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Disk compression is a software tool designed to allow you to save hard disk space. The operating system sets up a "virtual" hard disk which is actually a single large file on a real hard disk volume, containing your real files in compressed format.
Compression saves disk space, but this can be at the cost of performance, due to the overhead required to compress and uncompress the files. For many people now using 2 GB and larger hard disks, there is a performance hit with compression that is not worth the saved disk space. To improve performance then, you can remove the compression from the drive. This is simple to do by starting up the compression software (usually DriveSpace) and then selecting the option to uncompress the drive.