looks like your installation is somehow corrupted:
- did you possibly install the IDE within a long absolute path length directory? Could cause issues
- how did you extract the zip file?
- does the hardware/tools/edison/sysroots/core2-32-poky-linux subfolder exist at all?
I used 7zip as the extractor and that file exists, where do I need to save it so that it works? I think that part should be fine but seems like the next best thing to try.
The Arduino IDE can be downloaded from here: Intel® Edison Boards and Compute Modules — Software Downloads. You should extract it using 7zip. To avoid issues you should extract it in C:\