The *.sqz backup file is not in Gedcom format. It is a zipped version of all (most in your version) of the UFT data files needed to "Restore" your data.
But . . . if you should happen to have one of the rare copies of UFT 1.0, the backup/restore menu may be out of kilter by one line. So, hunt and peck up and down to see if you can get it to work.
There is an update to UFT 1.1 that may still be downloaded from the Archived UFT site on Rootsweb/Amcestry to correct this problem. This site has been mentioned on the last 25 threads or so on this forum.