At first, I was a little confused about how the compression was happening. In other words, I wasn't sure if it was creating something similiar to a zip file, or one of those ms compressed files, or if it was NTFS compression. Reading through the links Howard provided gave me enough to figure out it was NTFS. When you post this to the UDFs you might either include a note about the type of compression, or I might suggest another name for the UDF be something like NTFSCompress().
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(... better days ahead)