You may be interested in looking at the web site of a talented gentleman named Markus F.X.J. Oberhumer. He is the author of numerous data compression programs. There is one set of programs he has done implementing an algorithm similar to LZ compression that he calls LZO. If you go to this LZO Web Site scroll down the page till you find the source code download for miniLZO. This code may be applicable for use as a compressor / decompressor on an high speed 8051 derivative.

Please note that most higher performance data compression algorithms require intermediate buffers to function. So these codes will require a system setup with at least 32K extra XDATA memory and more likely a larger amount.

Michael Karas