Here's another update to this thread. After much trial and error and testing I find that I have to remove all plugins listed. Quick Cache, even though it's up to date for some reason does not work with Gzip compression.
Wp http compression plugin: http://wordpress.org/extend/plugins/...p-compression/
Turns on the Gzip.
Wp html compression plugin: http://wordpress.org/extend/plugins/...l-compression/
Gets rid of white space and comments in the code so that pages loads faster in browser.
But because a WP blog can use numerous themes, templates etc.... You may have to see what combination works best. Whether one plugin does great or both. On my site both seems to really speed things up. To make sure your Gzip is working you can check it here: http://www.gidnetwork.com/tools/gzip-test.php
If Gzip is working you won't need the first plugin. When I tested this forum the Gzip was working and compression was over 80% which is real good. My site compression is 78% which is good. Now if you find that your Gzip is not working when you test it on that site and you install that first plugin, your bandwidth will drop 50% or more a month even though your visits can remain the same. So if you are used to looking at your bandwidth without Gzip just times what you see by 2 or 2.5 and you will get what your site was doing before the Gzip. If your Gzip is working and you install the first plugin anyway it may turn off your Gzip so it's best to leave it alone if it;s working.
Also these 2 plugins do work with the newest WP version which is 3.5 as of 1-15-2013. Or at least I am not having any problems.

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