Why not just rename the .exe to .ex (or whatever) and then zip that?
Extension does not matter. Once browser downloads something (exe, txt, zip - doesn't matter) - it marks it as "insecure" file. You can rename as you want - this property won't change. You can manually remove it though.
However the problem comes when trying to execute the exe not in dowloading.
Its caught when I try to execute the exe from a mouse click or command line execution.
Of course. But how do you think the Norton checks if exe is not-so secure or good? It checks that attribute that was assigned during download from internet.
You can manually remove it. It is stored as NTFS alternate stream. You can use streams.exe
to view and delete them.
Basically do following:
1) download exe/zip whatever from internet
2) examine NTFS alternate streams - you should see it has one
3) delete the stream
4) run the executable - Norton will not complain anymore, because it will think this is local file that possible you created (by compiler for example).