While compressing files you can reduce the size of them, but not in such way that it can be put on one or two disks. However, there is a simpler alternative, you can create a partition on your harddisk where you store your music. In case the OS has problems and needs to be reinstalled, you can reformat the main partition, while the other (where you stored your music) remains intact. This
tutorial explains more about harddisk partitions. This
tutorial explains how to create/change harddisk partitions.
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