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Text files are often limited to a small amount of characters. Often just linebreaks, spaces, the alphabet in upper and lower case, numbers and some other special characters. In general, a textfile...

I've seen PKZip shrink data files of over 10 MB into something smaler than 5 kilobytes. :) Then again, those files only contained zeroes as data. Nothing else. Basically, what PKZip has to store is...