The extract dialog simply splits the filename at the first dot, unfortunately, many archives use other dots in the file name. I'm a C newb, but I tried to patch it anyways cause I really wanted this functionality. I might not have done this right, but it seems to be working fine for me, I think it'll accomodate most file types. patch is attached.
Created attachment 2101 patch to hopefully fix the extract naming issue
squeeze is not maintained anymore, closing.