Thanks for the quick response.  I added the registry key as specified, set the urlCompression attribute and reordered the modules.  The Dynamic Compression setting still could not be set to true or the following error was thrown:

HTTP Error 500.52 - URL Rewrite Module Error.

Outbound rewrite rules cannot be applied when the content of the HTTP response is encoded ("gzip").

Here is the urlCompression configuration element:

<urlCompression doStaticCompression="false" doDynamicCompression="true" dynamicCompressionBeforeCache="false" />

Does the Dynamic Compression Module need to move down the list of order modules or does the RewriteModule need to move up the list before the DCompression module?

 Also, where does the module reordering take place?....at the Web server level or at the web site level in the IIS Manager?

Thanks,

Mike