Problem [1.7]: gzip missing in brand new install

[Fergus]

Strange. Just completed a brand new complete install of [1.7] with no 
glitches but the first command attempted
tar -vxzf filename.tgz
failed with error msg:
tar (child): gzip: Cannot exec: No such file or directory
tar (child): Error is not recoverable: exiting now
tar: Child returned status 2
tar: Exiting with failure status due to previous errors
And indeed there is no gzip executable in /bin/ though cygcheck -c says 
"OK".
Attached: cygcheck.out. Anything obvious?
XP Pro SP3 FAT32 install.
Thank you.
Fergus

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