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Hmmm. Interesting to know why you would want to compress (and what kind of compression you use).
audio compression is not related to file compression. Nothing to do with PKZIP or MP3 or that kinda stuff.
In recording studios, you compress the audio (making loud parts softer and soft parts louder) so that you can hear the soft parts. Radio stations do it so that you can get more distance out of the signal. I want to do it so that the loud parts don't blow out the listener's ears while the soft parts are loud enough to hear.
Audio compression is also used as an effect. It can increase sustain, letting a note ring on rather than decaying quickly. Its often used with reverb and noise gates, which is how you get the classic drum sound on 80s rock/pop music.