So what is your flavor of choice?
Deflate/Deflate 64 (Multiple, Most Commonly Zip)
LZSS (RAR)
LZMA (7Zip, Recent Addtion to Zip)
BZip2 (Multiple)
PPMd (Multiple)
For me its Zip with Deflate, I like to not worry about the recipiant needing the right archiver or right version to extract the files, even if the compression ratio suffers.