None...if you need more space..get a slave drive..File Compression worked on98 boxes only because the size of Hdd,s was limited..it always created problems also...sooner or later...imo.
Any compression software thats worth anything will be able to split the file into segments of your choice in size. I'd split it in half and put it on 2 cds.
Popular compressors like Winzip and Winrar will compress most mixed content to around half it's size. That should fit on a single disk. If not, both can span multiple volumes and create 2 parts that can be burned on seperate discs.
Well, it mainly depends on what format(s?) you're trying to compress. Rar, Cab or Ace are probably good compression formats to try out though. I'd not put much hope it those compressing it by that much though.