Adding new styles always fails

When add a new content style I always get the following errors no matter how I compress the file.

Failed to install new style : Style archive is missing style.info file
Call Stack Trace
File Line Function
/usr/libexec/webmin/virtual-server/add_style.cgi 43 virtual_server::error
(eval 17) 6 (eval)
/usr/libexec/webmin/miniserv.pl 2043 (eval)
/usr/libexec/webmin/miniserv.pl 709 miniserv::handle_request

Now I built the tarball using both directory/ and without the directory/...

$ tar tvf borgnet.tar.gz
3468 2007-08-23 02:54 index.html
23 2007-08-23 02:54 robots.txt
94 2007-08-23 03:09 style.info

As you can see I do have a style.info file yet VM says I don't.