Index: INSTALL.txt
===================================================================
--- INSTALL.txt	(revision 6666)
+++ INSTALL.txt	(working copy)
@@ -52,7 +52,7 @@ NOTE: During this installation process y
 
      http://tinymce.moxiecode.com/download.php
 
-   Place the tiny_mce_gzip.php file in 
+   Place the tiny_mce_gzip.js and tiny_mce_gzip.php files in 
    
      modules/tinymce/tinymce/jscripts/tiny_mce
 
Index: tinymce.module
===================================================================
--- tinymce.module	(revision 6666)
+++ tinymce.module	(working copy)
@@ -123,6 +123,14 @@ $tinymce_invoke = <<<EOD
 
 EOD;
 
+$tinymce_gz_invoke = <<<EOD
+
+  tinyMCE_GZ.init({
+    $tinymce_settings
+  });
+
+EOD;
+
 $js_toggle = <<<EOD
 
   function mceToggle(id, linkid) {
@@ -195,8 +203,13 @@ EOD;
         drupal_add_js($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/plugins/filemanager/jscripts/mcfilemanager.js');
       }
       
-      // TinyMCE Compressor
-      if (file_exists($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/tiny_mce_gzip.php')) {
+      // TinyMCE Compressor 1.0.9 and greater
+      if (file_exists($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/tiny_mce_gzip.js')) {
+        drupal_add_js($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/tiny_mce_gzip.js');
+        drupal_add_js($tinymce_gz_invoke, 'inline');
+      }
+      // TinyMCE Compressor (versions < 1.0.9)
+      elseif (file_exists($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/tiny_mce_gzip.php')) {
         drupal_add_js($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/tiny_mce_gzip.php');
       }
       else {