There is something interesting I noticed. I can compress a file, through WinXP (and my partition is NTFS), and even though the 'size on disk' is lower, it stills occupies the same amount of space as it did prior to compressing.
r2rX 
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-Intel Core 2 Quad Q6600 (@3200Mhz)
-Gigabyte 965P-S3 motherboard
-2x2GB G.Skill PC-6400 (DDR2 800Mhz) RAM (4-4-4-12)
-Seagate 320GB (IDE) and Western Digital 500GB (SATA II) H.D
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-Windows Vista Ultimate SP1 (x64)
-Realtek HD w/ Creative PC Works 5.1
-2 x L.G DVD/CD-RW Combo - GSA-H62N
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