An option is to let Windows handle the compression. Just enable compression on the folder where you're storing your log files. There are some performance considerations you should be aware of when copying the compressed files, and I don't know how well NT compression performs in comparision to GZipStream
or other compression options. You'll probably want to compare compression ratios and CPU load.
There's also the option of opening a compressed file, if you don't want to enable compression on the entire folder. I haven't tried this, but you might want to look into it: http://social.msdn.microsoft.com/forums/en-US/netfxbcl/thread/1b63b4a4-b197-4286-8f3f-af2498e3afe5