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try logging on as administrator and see if you can change the security level from that account.
Try this:
From the affected account press the start button and then run program, type gpedit.msc in the run program window and press enter.
Expand the User Configuration tree, expand the Administrative Templates tree, the windows components tree, the internet explorer tree and the internet control panel tree.
Expand the Security Page tree then click on the Internet Zone Icon.
In the right hand pane look for "Allow File Downloads" double click and change the setting to enabled- it should look something like he attached image. Rebbot and try downloading a zip or rar.
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