Try extracting the install version instead of the Source version. In order to use the source version, you need to compile the solution in Visual Web Dev (or Visual Studio).
After you do that, you might get an error about a missing file, "sitesURL.config" (or something close). You'll find that file in the Config directory of your DNN install. Just copy that out to the root folder of your DNN install and it should clear up.
Hope that helps!