We delayed trying compression because we figured the overhead of compressing/decompressing would be prohibitive. When we finally gave it a try, though, it was a huge success. Bandwidth used dropped significantly, and the game seemed much more "snappy" than before.
The time required to compress/decompress the data is significantly less than the time saved by sending less information.
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DavidRM
Samu Games
http://www.samugames.com