Thanks for helping mate. Here is what I've got now:
; %1% = "I:\LaunchBox\Games\Microsoft Xbox\my_game.zip"
MsgBox, %1%
SplitPath, %1%,,,,romName
; romName = my_game
MsgBox, %romName%
RunWait, "I:\LaunchBox\ThirdParty\7-Zip\7z.exe" x -y -o "I:\LaunchBox\ThirdParty\7-Zip\Temp\%romName%\" "%1%",,hide
if FileExist("I:\LaunchBox\ThirdParty\7-Zip\Temp\%romName%\default.xbe")
{
MsgBox, It exists
FileMove, "I:\LaunchBox\ThirdParty\7-Zip\Temp\%romName%\default.xbe", "I:\LaunchBox\ThirdParty\7-Zip\Temp\%romName%\%romName%.xbe", 1
}
RunWait, "I:\LaunchBox\Emulators\CXBX-R\CXBX.exe" "I:\LaunchBox\ThirdParty\7-Zip\Temp\%romName%\%romName%.xbe", 1
;FileRemoveDir, "I:\LaunchBox\ThirdParty\7-Zip\Temp\%romName%"
So far I get an error on the line with SplitPath, saying there is an illegal character so I looked up that command and I don't know what the illegal character is. I commented that line out to see what happens after and it looks like 7zip didn't extract anything but the rest of the script did send to cxbx to load nothing.xbe, where nothing is literally nothing, just .xbe. I'm assuming this is probably because of not running the SplitPath command. Thanks again for your help.