crazyeyes writes "This is easily the best article I've seen comparing data compression software. The author tests 11 compressors: 7-zip, ARJ32, bzip2, gzip, SBC Archiver, Squeez, StuffIt, WinAce, WinRAR, WinRK, and WinZip. All are tested using 8 filesets: audio (WAV and MP3), documents, e-books, movies (DivX and MPEG), and pictures (PSD and JPEG). He tests them at different settings and includes the aggregated results. Spoilers: WinRK gives the best compression but operates slowest; AJR32 is fastest but compresses least."
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