ResourceSquisher uses a combination of JavaScript/CSS minifying, concatenation, gzip compression, and both server-side and client-side caching. All methods except for concatenation are optional and can be enabled/disabled via the configuration file (RS_config.php). I have used this same method on some sites and found that it is possible to achieve a 6:1 compression ratio, as well as drastically reducing the number of HTTP requests made, while still taking advantage of a client-side cache.
Special thanks to Douglas Crockford and Ryan Grove for creating JSMin (http://code.google.com/p/jsmin-php/), and to Joe Scylla for creating cssmin (http://code.google.com/p/cssmin/), on which this project is based.
Usage of ResourceSquisher is very simple. Once configured for your environment (you"ll have to set some paths in RS_config.php), you can simply use the two provided scripts as the src/href for your scripts/styles. For example,