Changes from previous version:
 - Independent from zlib library (Haskell one, not C)
 - Allow hand-flushing the contents (from outside).
 - Fix potential memory-leak
Next goals:
 - BZip support
 - Generic interface for flushing
To think about:
 - Should inner iteratee be able to request flushing?
Regards
PS. It did change API by removing dependency on zlib but I home such
breakage in 0.1.x will be allowed
Have you thought about adding LZO[1] support? There'd be the usual 
licensing issues for GPL, but it offers a realtime alternative to gzip 
(i.e., decompression time is hidden by I/O latency) with comparable 
compression performance.
[1] http://www.oberhumer.com/opensource/lzo/
-- 
Live well,
~wren
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Currently I thought only about bzip2/gzip. Probably .xz support would
follow if any.
LZO, as you said, is on GPL-2. While I have no problems with GPL-2 some
potential users may (Haskell tend to be BSD3 community). Does anyone
knows if conditional compilation solves problem? In my interpretation of
GPL-2 yes but I'm not sure. 
Regards
Conditional compilation is tricky for licensing purposes, I think.
But a 'iteratee-compress-lzo' or 'iteratee-compress-gpl' package would
definitely avoid such issues.
Cheers!
-- 
Felipe.
version numbers are cheap :)
Conrad.
I was going to suggest iteratee-compress-gpl...
-- 
Live well,
~wren