I found a proggy called Batch Zip Toolkit which does the job nicely. Nice and quick too
Keeps all the original filenames as well.
A quick cut n paste from the webpage
Batch Zipping of Files
Batch Zipping of Folders
Recursive Batch Zipping Options
Support for the 13 most popular archive formats
Batch Creation of self extracting archives
Batch Conversion of one archive format to another
Batch Testing of archives
Batch File Renaming
Compatible with : Windows 95, 98, Me, NT, 2000 and XP