Many people have had problems installing components on the new DotNetNuke 4.0 platform. There seems to be no rhyme or reason to it. It does not matter what the file size is, who made the module, what the skin looks like, or how it's zipped. The problem has to do with some DNN core code that leaves the file stream open after uploading, and thus can't open it again to extract the zip files.
So, if you need to install a new version or a brand new module, the process is actually pretty simple. If you've already installed this component in the past, then all that you need to do is copy the .dll files into the \bin folder, directly under the root of your site. If there are supporting files (.aspx, .ascx, .htm, .js, etc.), those get copied into the \DesktopModules\[FriendlyName], where FriendlyName refers to the Friendly name for a module.
If this is a new install of a module, then you can just circumvent the upload portion, but still let DNN do the installation. Simply copy the PA zip file into \Install\Module, or whatever kind of component this is. Now navigate to http://[yoursite]/Install/Install.aspx?mode=InstallResources. This will now install all PAs in your Install folder, and everything is initialized.
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