Manish is a Sr. Program manager in our NETCF Part of the Mobile Developer Group ; he recently wrote up an article on the using GZip encoding for WCF application for .NETCF. So take a look at his blog on http://blogs.msdn.com/maagniho/archive/2008/12/24/gzip-message-encoding-for-wcf-applications-written-using-net-compact-framework.aspx which has the sample and sources for it.

Happy Holidays ! 

Amit Chopra