is this possible?

One of the things I loved about the xbmc is not having to extract .rar files. I click the rar and it plays. While using my htpc, I found I can play the files from the extraction, but there is always studder and slowdown. This goes away when I extract the contents first. Thus I ask, is there a way or program that can extract the contents to a cache for playback and deletes the cache when it is done viewing?

I use KMplayer if that helps any.