It stores symlinks as symlinks (it will not copy the file which the symlink is pointing to).
If the Source directory path does not exist, there will be an error. If the folder structure belonging to the destination does not exist, you will be notified with a warning in the log and then the Step will create it. If a ZIP exists on the specified destination, the user will be notified with a warning in the log and then the previous file will be overwritten.