Works for me, I gave this tool to Panker1992 two years ago and he never had issues so I don't know
Code:
FreeArc 0.67 (March 15 2014) creating archive: data.arc
Compressed 1 file, 38,190,868 => 6,800,812 bytes. Ratio 17.81%
Compression time: cpu 0.06 sec/real 43.04 sec = 0%. Speed 0.89 mB/s
Extracted 1 file, 6,800,812 => 38,190,868 bytes. Ratio 17.81%
Extraction time: cpu 0.11 sec/real 0.55 sec = 20%. Speed 68.97 mB/s
Maybe check AV, it could be preventing razor.dll from hooking some functions in razor.exe.