
Its a known issue in Windows Vista, Server 2008 and Seven. I received lots of mails about this problem. Sometimes people called it a bug in Windows and sometimes a virus problem. But the truth is, its a compatibility issue between WinRAR and Windows.
Recently a visitor "Blu" contacted me about the same issue. He is using Windows 7. Whenever he right-clicks on a file/folder in Explorer, he gets a very wide context menu as shown in following screenshot:

Following is another clear screenshot of the whole context menu:

If you are also facing this problem, follow these simple steps to fix the problem:
1. Open WinRAR and go to "Options -> Settings...".
2. Now click on "Integration" tab.
3. In "Shell integration" section, try following things to fix the problem:
- Disable "Icons in context menu" option and click on OK button.
- If the above trick doesn't work, then enable "Cascaded context menus" option.
- If none of the above 2 options works, then remove the context menu entry by disabling "Integrate WinRAR into shell" option.

4. After following 3rd step, your problem will be solved.
This article was posted in Troubleshooting, Windows 7, Windows Vista.
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Chad
Blue, you're a filipino? if you are? were both!!! XD
Blue
yeah, filipino here.. lols!
adzasw
merciiiiiiiiiiiiiiiiiiiiiiiiiiii جزاك الله خيرا
NoName
This can be interesting, but why using WinRAR in first place when there are free alternatives such as 7-Zip or IZArc?
Blue
Its now fixed in Windows 7 RC wide context menu...