PA 2012 doesn't like TeraCopy

[AluminumHaste]

I have been using TeraCopy (http://codesector.com/teracopy) for a while now, because the built in Windows one just sucks for copying and moving files in general.
I noticed an issue, when I try to extract an archive by dragging from PA to an explorer window, PA will extract to temp directory first, then I get an option from TC, to copy with teracopy or with windows. If I click on Teracopy, I get an error stating, for example:

D:\PATemp\_PA259\\w32deps
Open Error: The filename, directory name, or volume label syntax is incorrect.

If I click on Copy with Explorer then it works just fine.

I'm guessing the double backslash has something to do with that? My current Temp directory is set to "D:\PATemp".
Is this an issue with TeraCopy or PA?