Not sure of the algorythm they are using. Stability is not an issue. Speed is relative- since files are compressed there is less disk activity involved in reading them, but they have to be uncompressed which chews clock cycles, but since most modern systems are massively overpowered where the CPU is concerned this may be a non-issue.
I beleive you can actually compress at the folder level. Say you have a folder with a large database file in it, you can right-click the folder (or even the file, for that matter), select prperties and check off compress. If you do it at the folder level anything you save to that folder will be compressed.