To check if the file is encrypted or not, you can right-click the file, click the Advanced button in the Attributes section of the General tab, and see if under the Compress or Encrypt attributes region, the "Encrypt contents to secure data" box is checked.
The extra long file paths are indeed an issue when working in programs such as Windows Explorer. However, in fact, ZIPmagic DoubleSpace, and both of the libraries it uses (WIMGAPI by Microsoft and WIMLIB by open source), have full support for extra long file paths - this is why file paths in the progress window start with \\?\ (the super long file path modifier/indicator string).
Let me know if the files are encrypted, if you can get to that point in Explorer?
The Next Generation Data Compression Platform