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I don't understand what you having a hard time with. Winrar, winzip 'et-al' are decompression programs. Most people have a basic understanding of this long before venturing out into webdesign because they download 'stuff' all the time that is compressed in these formats. It's a given. tar.gz files are the same way. If you have almost any decompression tool installe, it doesn't take a wizard to figure it out.
Most people firs see tar.gz format when they venture out onthe web in search of scripts, and guess what. Almost every davailable script on the net is tarballed, or gz compressed. Sure, most script creators offer .zip versions of their scripts, just like XOOPS does.
Themes being in .rar, or gz format is not the fault of XOOPS, but is done by the theme developers themselves, so maybe it's them you need to get in touch with. Yes, the templates are downloaded and upload in tar.gz, but that thats it.
You don't have to install smarty creator, it's not needed for XOOPS, period. If you do need support for that, then go to their forums for support as we don't support that here.
80% of home users might use Windows, but 95% of web developers use Linux. This is why script makers offer many different types of compressed files for distribution, XOOPS is no different.
We're here to help, so ask questions instead of questioning the efforts of others.
In summation, reinstall winrar if you want, and tell it not to be your default compression tool during installation. This is a basic windows thing and is not supported more then that here. When you do get a /rar or .gz file, just right click and unpack.
Once your theme is unpacked, upload to your server, you should know how to do this at least. If not, consult your FTP documentation. Once uploaded, configure XOOPS to use your theme.
If you want more information, follow the links in "my" signature and read everything you can get your hands on. You WILL be up and running in no time if you have the patience and time. IT's not hard or cumbersome and no other CMS will be as simple to use, period.