Thanks for everyone who tried to help on this one.
I got the response from the vendor and it is given below.
It is still weird since salix has bzip2 support, but the archive that was built by vendor was not working. Vendor changed their compression method to standard zip and now it is working fine.
The compression format used was BZip2 because it supports a higher compression rate but since the operating system that the end user is utilizing doesn't support it, the programmer has now switched to a new "Deflate" option that allows the users operating system to use the standard zip file readers
I will mark this thread as SOLVED.
Thanks,
Balaji.