If we used Perl to do the compression, I think that would work quite well. However, I discovered a very odd bug in Netscape 4.x and compression.
For anyone not familar with this, most recent browsers are capable of receiving gzip compressed data, and they can uncompress it on the fly. The mod_gzip tilly mentioned is Apache's way of compressing data before the code crosses the wire. However, mod_gzip only compresses data if the browser passes certain headers to the webserver saying the browser is indeed capable of handling compression.
Netscape 4.x seems to be able to handle compressed HTML just fine. However, I've run into a problem where if you do something like this in your HTML code:
I discovered this using Apache 1.3.19, mod_gzip, and Netscape 4.77.