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aha - OK the gz utility you can find there is a command-line utility. The instructions should be in an accompanying file in the zip package. GUI versions for Windows are few and far between. I've heard whispers that winzip can do .gz compression - but I don't know for certain.
tried that but still gives same result as on the zip file, i think i will leave it for now and just work on layout of site i will tehn upload to hosting and worry about it then