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Downloaded a movie which installs with a .arj file but i can't open it. I have tried several programs which have been unable to open. I would appreciate any help please!

I've never heard of anyone compressing a movie with .arj for torrent distribution, so I'm a little suspect. The compression formats usually used are Zip or Rar, if used at all (which is getting more and more rare over time). Compression is used more often with newsgroups. Having said that, unless the file is corrupted, you should be able to open it easily with most of the commonly used compression programs such as 7-Zip, WinRar and PeaZip.

Win7 extracts the movie arj file into an.exe file which Windows says it cannot open.

Are you sure it really is movie instead of malicious virus or trojan?
No movie should come with compress file these day.

I agree with TNT. You've got something bad there. DON'T RUN IT! Just delete it. I don't recommend it, but if you are curious, have your AV/Malware program test the .exe file first before you get rid of it.
Obviously, you got this from a public tracker, as a private tracker would never allow such a file to be made available. The best thing you can do for yourself, if you are going to continue to do torrenting, is to get yourself as a member on a private tracker. You'll need to get an invitation from someone, usually. Google "torrent invites" to read up a little on the process.

100% fake file, I can guarrantee that. Don't open and delete it right away as others mentioned.

Try using WinRAR or 7-Zip to extract the .arj file.