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NTFS is capable of compressing
individual files
all files within a folder
all files/folders on the volume.
Compression is executed within NTFS.
Any Windows program can read/write compressed files without considering the extent of the compression.
When a compressed file is opened, only a part of the file is decompressed while being read.
Data already in memory is uncompressed.
Modified and new data is compressed again -- when written to the compressed file on disk.
NTFS compression algorithms support cluster sizes of up to 4 KB.
The best use of compression is for files which are repetitive, written seldom, usually accessed sequentially: log files are an ideal example.
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