diff --git a/INSTALL.txt b/INSTALL.txt
index 8c30185a869db4e45b2add41a2c773f71299ab08..3e83de309372fd5f59dfb10c99e65994acde03be 100644
--- a/INSTALL.txt
+++ b/INSTALL.txt
@@ -52,7 +52,7 @@ NOTE: During this installation process you'll be asked to also
 
      http://tinymce.moxiecode.com/download.php
 
-   Place the tiny_mce_gzip.php file in 
+   Place the tiny_mce_gzip.js and tiny_mce_gzip.php files in 
    
      modules/tinymce/tinymce/jscripts/tiny_mce
 
diff --git a/tinymce.module b/tinymce.module
index efabc47efa444a816a9783f437ea2d03a3bd03ef..b64e4c813f590c9bd3d4db3904f1075c73b3f87e 100644
--- a/tinymce.module
+++ b/tinymce.module
@@ -124,6 +124,14 @@ $tinymce_invoke = <<<EOD
 
 EOD;
 
+$tinymce_gz_invoke = <<<EOD
+
+  tinyMCE_GZ.init({
+    $tinymce_settings
+  });
+
+EOD;
+
 $js_toggle = <<<EOD
 
   function mceToggle(id, linkid) {
@@ -196,8 +204,13 @@ EOD;
         drupal_add_js($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/plugins/filemanager/jscripts/mcfilemanager.js');
       }
       
-      // TinyMCE Compressor
-      if (file_exists($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/tiny_mce_gzip.php')) {
+      // TinyMCE Compressor 1.0.9 and greater
+      if (file_exists($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/tiny_mce_gzip.js')) {
+        drupal_add_js($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/tiny_mce_gzip.js');
+        drupal_add_js($tinymce_gz_invoke, 'inline');
+      }
+      // TinyMCE Compressor (versions < 1.0.9)
+      elseif (file_exists($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/tiny_mce_gzip.php')) {
         drupal_add_js($tinymce_mod_path . '/tinymce/jscripts/tiny_mce/tiny_mce_gzip.php');
       }
       else {