Why is IIS7 not compressing my static files?

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http://serverfault.com – I am trying to get IIS to compress jquery.js (and all other static files, but using jquery as the example here) on my localhost, but something goes wrong. The funny part is that when I look in my %SystemDrive%\inetpub\temp\IIS Temporary Compressed Files\MySiteName, I see the jquery.js file there, and its size is 24 KB. But in the browser, according to the Net tab on Firebug, the size is 69 kb. I've tried the following: - Checked that my browser accept compression. I found "Accept-Encoding gzip, deflate" in the request header via Firebug - Enabling Failed Request Tracing. Nothing turns up i (HowTos)