Compression will not save you any time or space. You should consider an external USB drive for storing Image Backups, its faster and you only need one DVD (Recovery DVD) to restore Windows to the hard drive. Disc also have a disadvantage in that you need to number them (1,2,3,4,5,6,7, .... 'Last") as you will need to know the sequence in order to perform a restore.
There are third party solutions that in general are far more reliable than Windows 7's built-in backup and restore.
Norton Ghost version 15 - has a 30 day trial available
http://www.symantec.com/norton/ghost
Supports: CDR/RW, DVD+-R/RW, Blu-Ray devices,USB and FireWire® (IEEE 1394) devices,Iomega® Zip® and Jaz® drives
(Note: Trial does not allow you to create a Bootable Restore CD which you will need to restore the image)
http://www.symantec.com/norton/downloads/trialsoftware/register.jsp?pvid=ghost15
User's Guide: ftp://ftp.symantec.com/public/english_us_canada/products/ghost/15/manuals/ngh_15_user_guide.pdf
Version 15 does not support Windows 8
Acronis True Image 2013 - has a 30 day trial version available, trial Key send via Email.
(Note: Cloning and drive initialization (creating a MBR) are not support in the trial version)
Install Acronis and then create a bootable Restore/Rescue Media CD before you start creating your first image backup
http://www.acronis.com/homecomputing/products/
30 day trial : http://www.acronis.com/homecomputing/products/#tryorbuy
True Image User Guides and documentation:
http://www.acronis.com/support/documentation/index.html
Supports Windows 8
Free alternatives:
EASEUS Todo Backup Home V5.0
(Note: Install Todo and then create an "Emergency Disk" before you start creating your first image backup)
http://www.todo-backup.com/products/home/free-backup-software-features.htm
Version 5 supports Windows 8
J W Stuart: http://www.pagestart.com