bzip2 has pretty large memory requirements, consuming up to 8 MB in
addition to the data being uncompressed.
Although thats less of an issue now than it was some years ago, i still
doubt that the kernel is going to be bzip2 compressed any time soon.
if you're looking for better compression, you might want to examine upx
(http://wildsau.idv.uni-linz.ac.at/mfx/upx.html). The kernel image
compression is still experimental, but already usable. kernels tend to
get ~100 K smaller compared to the usual gzip compressed bzImage.
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