Bring up properties for your floppy drive, and select the
   "Compression" tab. You only have one compression option here; you
   can't put a separate CVF on a floppy disk. The rest of it works like
   compressing your whole hard drive.
   
   It's best to do this with blank disks; otherwise you will waste time
   compressing the files already on the floppy. Use this technique for
   any other removable media; optical disks, SyQuest disks, whatever.

     * 11.5.1. Enabling "Auto-mount" for removable compressed disks 
       
   Back in DOS 6.0, you had to manually mount compressed floppies, and
   unmount them before ejecting them. Win95 will automatically mount
   compressed floppies if you allow it to.
   
   Run DriveSpace, then in Advanced/Settings, turn on the Auto-Mount
   switch. This is normally turned on by default. The first time you
   access the removable disk, if it sees a DRVSPACE.xxx file, it will use
   that instead of the actual disk.
   
   No, you can't copy .CAB files to compressed floppies; the files in a
   CAB are already compressed.