In addition to the above - not all file types are compressed by default. You need to edit the system.webServer/httpCompression configuration (get the Admin Pack extension and use the Configuration Editor feature - simplifies the process). Once you change the config, you need to recycle the application-pool for the changes to httpCompression to be picked up by the IIS7.
Request - could people writing these tutorials (which are in general quite helpful) provide all the information and save others hours of searching the web, please? Thanks.