My problem is quite unique since I've been searching the internet and no one had a similar problem.

This video will show what my problem is:

Winrar Glitch - YouTube

So as you can see from the video, I 1) Opened a winrar file, 2) Drag and dropped the file onto the desktop, and a bunch of files are copied and pasted onto the desktop.

I tried reinstalling Winrar three times, tried 64bit and 32 bit (made sure it's for Windows 8). Restarted the PC.

Any help is appreciated.