A different approach to optimization - let the server figure it out. It does the same whitespace elimination (on HTML files, as well as script and CSS files), but optionally much more as well.

Doesn't optimize files embedded within webapps, however, as it depends on being able to rewrite the files to optimized versions. And it only works on Apache (open source, could be ported to IIS or any other web server that permits loadable modules, but I haven't heard that it has been).

http://code.google.com/speed/page-speed/docs/module.html