Scheduling a powershell script as a sql agent job

I have a script that when I run straight from powershell or as a windows scheduled task works
fine.

The script does a bcp to my logs into a csv file zips it then deletes the zip.  When I run the script as a scheduled job from sql the job says it has completed but the zip is not deleted. When I check the history I see this message.

Executed as user: host\g. 1  Starting copy...    0 rows copied.  Network packet size (bytes): 4096  Clock Time (ms.): total        1  7-Zip  4.60 beta  Copyright (c) 1999-2008 Igor Pavlov  2008-08-19  Scanning    Creating archive O:\LogsTest\log_.zip    Compressing  exceptionlog_1_.csv    Everything is Oklog_1_ was not found in O:\LogsTest\.  Process Exit Code 0.  The step succeeded.

Any idea why this is happening? I know I have some other zip questions out there but this is unrelated.

I am trying to run this from server 2003 / sql server 2005.

I have also tested this on server 2008 / sql 2008 and the script worked perfect.

The way I am calling the script from server 2003 / sql 2005 is like so.

Type Operating system cmd, run as SQL agent service
powershell.exe c:\logtest.ps1