Strings average 300 characters each. This is either 300 or 600 bytes, depending on the Unicode settings. Say you use a varchar(4000) column and use (on average) 300 bytes each.
Then you have up to 200,000 of them for storage in the database.
This is less than 60 MB of memory. In a country of databases, that is, frankly, peanuts. 60 GB is what I would call a "medium" database.
At the moment, even thinking about compression is a premature optimization. SQL Server can process this amount of text without breaking sweat. If you didn’t specify any system restrictions, I wouldn’t do this until you start to see performance problems, and even then this will most likely be the result of something else, such as a poor indexing strategy.
And the compression of certain types of data, especially very small amounts of data (and 300 bytes, of course, is not enough), in fact, can sometimes give worse results. You can get “compressed” data, which is actually more than the original data. I assume that most of the time, the compressed size is likely to be very close to the original size.
SQL Server 2008 can perform page-level compression, which will be a slightly more useful optimization, but you are on SQL Server 2005. Therefore, no, you should definitely not try to compress individual values or rows, this does not happen to be worth the effort and can actually worsen the situation.
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