I can open .tbz archives (FreeBSD binary packages), browse directories inside them and extract them from the context menu without a problem. But if I open them and double-click any file to open/view/execute it, it does absolutely nothing. No error message what-so-ever, and nothing on the console when I execute xarchiver from there either. Also, if I open an archive and try to extract "Selected Files", nothing is extracted. Extract "All Files" works perfectly fine though.
Xarchiver is no longer hosted on the xfce repos - it's now at http://xarchiver.sourceforge.net/ If this bug is still valid, please file it there.