Edit: Clarification after answer: I chose Lucas's answer as the correct answer for this question. DotNetZip, when implemented with the I18N.dlls works like a champ in the Editor and built .exes. My specific implementation details are located in the "Potential Answer: DotNetZip" answer below.*
Edit 1/30/2011: Just a quick note to say that I have been using the DotNetZip solution in 3.x without any issues.
Using the System.IO.Compression.GZipStream classes results in the dreaded DllNotFoundException: MonoPosixHelper exception (http://answers.unity3d.com/questions/3147/dllnotfoundexception-monoposixhelpersystem-io-compression-deflatestream), so until Unity 3.0 comes out and the later version of Mono it ships with supports a fully managed compression scheme, we have to rely on a third party compression library.
There seem to be two libraries that might fit the bill. SharpZipLib (http://www.icsharpcode.net/opensource/sharpziplib/) is a venerable tool for zip compression, but the API is painful to use.
Some have reported that DotNetZip (http://dotnetzip.codeplex.com) works with Unity. I keep receiving an "IBM437 codepage not supported" (or similar) error when trying to work with this library. It is a much better library than SharpZipLib from a usability perspective.
There is a mono compiled version of SharpZipLib that ships with Unity (as discussed in this forum post http://forum.unity3d.com/viewtopic.php?t=10699&highlight=sharpziplib), which seems like a possibility. However, I am hesitant to use an older version of the library.
Should we just wait and hope? Can someone confirm if later versions of Mono will support this out of the box? Or will we have to roll our own in the 3.0 time frame, too?
Has anyone tried using this for iOS? I'm concerned firstly whether it will work and secondly about speed!
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