Both the client and the server should have a version installed which has LZO 
enabled. Is this the case? If it is, please create a new bug. You can cc me and 
I will take a look into it.
LZO compression works fine for Terabytes of data for me.

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https://bugs.launchpad.net/bugs/925315

Title:
  [Patch][Precise]Enable LZO support

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