Problem with zip_open() returning integer instead of resource

Hi
I am trying to extract a zip archive located on the server. The archive is at http://79.170.88.19/~gaf3//newdir/subdir/Archive.zip it is readable. And I compiled zip support into php

Zip       enabled
Extension Version       $Id: php_zip.c,v 1.1.2.38 2007/08/06 22:02:32 bjori Exp $
Zip version       2.0.0
Libzip version       0.7.1

My Code can be found below, the error I am getting is

Warning: zip_read() expects parameter 1 to be resource, integer given in /home/gaf3/domains/bla3.com/public_html/autoinstall.php on line 67

Warning: zip_close() expects parameter 1 to be resource, integer given in /home/gaf3/domains/bla3.com/public_html/autoinstall.php on line 76

As you can see I used $file = getcwd() . '/Archive.zip'; to get the file location
$file is /home/gaf3/domains/bla3.com/public_html/newdir/subdir/Archive.zip
I also tried $file=./Archive and $file=/public_html/newdir/subdir/Archive.zip

I DO know that it is most probably a file location error..but I can point my finger on it. Linux server used.Start Free Trial

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$file = getcwd() . '/Archive.zip';
echo $file;
$zip = zip_open($file);
echo $zip;
if ($zip) {
  while ($zip_entry = zip_read($zip)) {
   $fp = fopen(zip_entry_name($zip_entry), "w");
  if (zip_entry_open($zip, $zip_entry, "r")) {
   $buf = zip_entry_read($zip_entry, zip_entry_filesize($zip_entry));
   fwrite($fp,"$buf");
  zip_entry_close($zip_entry);
  fclose($fp);
  }
  }
 zip_close($zip);
}
else
echo "not valid resource";