Try www.lre.co.uk you can often pick up things cheap if they have lots of them.
I have only ever had one Win95 box that simply was not happy with a compressed HD. It worked fine without but when I tried to compress it it would simply stop near the end and crash, lost everything (but it was only a fresh install). Re-installed a few times and tried again but the same problem, never figured it out and Win98 had only just come out and I did not try it.
I have compressed many others without trouble though.