There appear to be several versions of this song -

1) the original version by The Containers
2) a version by James A. Smith's other band, the Beach Bullies
3) a studio version recorded by early (pre-Soft Boys) Robyn collaborators Maureen and the Meatpackers, slated for release on Armageddon records but only produced in a handful of test copies (Armageddon promo single)
4) a Soft Boys studio version, recorded at Alaska Studios with Rosalind and Anst (ex-Meatpackers) on guest vocals (see below) and featured in the first episode of the Music View radio show, and
5) A live version from Maxwell's in 1980 during the Soft Boys' first (brief) US tour. This was included on a 7" with the 2001 re-release of Underwater Moonlight and was reportedly a B side on something else in the 80s.

From James A. Smith:
"The song was written by me, and originally recorded by my band of 1978-80, the Containers, at Spaceward Studios. The lineup was Myself on Guitar and vocals, Adrian Foster bass,(Also bass player with Cambridge pub/party favourites 'The Ducks On The Wall Gang' named after a strip cartoon I once drew), Stella Barker on rhythm guitar (she later played with The Bodysnatchers, a ska band, and The Belle Starrs, who had several hits in the early eighties), with Robyn on lead guitar for a couple of numbers (not Zip Zip) and Morris Windsor on drums.

The version you may have heard was recorded at Alaska Studios, Waterloo, London SE1 as part of the Underwater Moonlight sessions, or shortly afterwards. The Soft Boys had played Zip Zip as an encore a couple of times in the States - I think there is a bootleg from a show in NJ - must have been 1980? The Alaska version was the Soft Boys, with Rosalind Kunath and probably Anstis Fisher on vocals with Robyn."