I'd almost bet it can NOT be a DOS based zip program. At least not pkzip. Looking on their site, they don't mention file size, only the number of files (up to 16,000).
Winzip is a Windows zip program, pkzip is the DOS based zip program. And DOS would limit the amount of available memory (unless your using a DOS extender).
I know that Winzip prior to version 9 had a file size limit of 4 gigs. Ver 9 is supposed to be unlimited in size.
As far as page file, I'd add another 43+ gig. Make it as large as the zip file. I'd also zip it to any other, less busy drive than C:. Also where does the db back up to?
Also make sure you defrag your hd after you zip this file. You might see a bit of improvement. Also shut down any/all programs/services that don't need to be running during the zip process.
Your bottleneck is probably the size of the db your trying to zip. Zipping can take up lots of resources.