Ok so the "Extract here" in the right click context menu is gone. How do i get it back? Btw, is this some kind of 64bit vista issue or what?
Try to go into the options/settings to re-enable them. Might be worth rebooting too to see if that helps.
Note that 7-Zip has a 64-bit version listed on the home page it's the:
Download .msi x64 1 MB
As the poster above me noted, 1st make sure you have the 64-bit version installed.