Developer website: Fruit Stand Software
Bezipped is a file compression and archive utility built on top of the bzip2 command line tool that comes with Mac OS X. In general, Bezipped creates smaller archives than those generated by Finder's "Compress" functionality. Couple that with the fact that Bezipped also allows you to create "Windows safe" archives (archives without the dreaded ._ files), and the ability to put archives where you choose, and you've got a one stop compression shop.
Mac OS X 10.5 or later