Here's a discussion thread with a fix on how to change dired to compress files with bzip2 instead of gzip by default. It requires editing dired-aux.el and recompiling it. It would be a nice project for someone to go in and make this a customize variable instead of this hack.
4:51:12 PM comment []
This a great page for getting Emacs and Cygwin to work together more harmoniously. I used a tip on this page to fix a problem I was having where Emacs dired mode would not uncompress files.
4:27:05 PM comment []