FYI:
Since there is (was) conflicting recommendations in XEP-0170, Recommended Order 
of Stream Feature Negotiation,
(SASL -> compression)
and XEP-0138, Stream Compression, (compression -> SASL), but St Peter said 0170 is the correct one, I thought about investigating what servers say:

OpenFire 3.3.2: It accepts both ways but continue to offer SASL even after the 
process SASL -> compress
                    which it shouldn't
ejabberd 1.1.2: It only accepts compression before SASL (XEP-0138)

Mats

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