I have always been a fan of compression on IIS. I have written a few posts on how to actually do compression on IIS6 and II5 (http://www.iisinformation.com/blogs/jimiz/archive/2007/04/30/iis-6-0-compression.aspx). The problem with the built in compression is that you do not get any stats or results of what is actually happening. The team over at ripcordsoftware put together a great application called IISxpress. It does a wonderful job of compression and gives you some flexibility to limit or expand what gets compressed. (http://www.ripcordsoftware.com/IISxpress/Default.aspx). They have a free (non comerical version) and a purchasable version. So head on over and download or purchase this great software.