Ok, I just tried again with Knoppix. This time I copied everything (source, jar, dest) into the Knoppix RAM disk. Also I used a mix of upper and lower case characters for source and destinations paths. Worked flawlessly.
My guess it that the path or file names of the source directory are wrong. In the WINLEMM directory if the original CD, every path and file name is uppercase. If you use the files from the CD or copied them from there, this should be the case and the extraction should work. If, for any reason, the paths/files inside WINLEMM are lowercase, then rename them to uppercase.
Anyway, I added some error checking, so when source paths are missing, the correct error should appear now. Give it a try.