BULK IMPORT - zip file in T-SQL
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BULK IMPORT would not be able to do this, but if you are using SQL2005 or higher you can use SSIS. The first step is to run the Exectute Process task and use the zip utility to unzip the file. The second step is to use the SSIS Bulk Insert task to enter data into SQL Server.
EDIT: Use compression from unixutils and not cygwin to unzip the files as it understands Windows proper filenames. This means you don't need to maintain / cygdrive paths as well as your own paths.
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