It seems to me that tar on windows does not understand directory symbolic links - it treats them as an ordinary folders which in my case leads to infinite recursion. 7-zip has the same problem. Are you aware of any free tool that can simply backup directory with symlinks pointing to parent directory and then restore it on another machine? Both machines are Windows machines: Windows Server 2008 and Windows Server 2012.
Use -h option for tar, e.g.