Compression In IIS6

I have enabled compression in IIS6 on win2k3 server and the dynamic compression is working lovely but the static compression is not functioning. I have double checked the metabase settings and permissions on the Temp Folder (IUSR write permissions) but nothing is ever written to the folder and my static files (htm,html) are not sent with compression! FWIW I can compress them by adding the filetype to the dynamic compression metabase string and they work but this is not efficient. I think I must have overlooked something...

Here are the metabase values:

<IIsCompressionSchemeLocation ="/LM/W3SVC/Filters/Compression/deflate"
HcCompressionDll="%windir%system32inetsrvgzip.dll"
HcCreateFlags="1"
HcDoDynamicCompression="TRUE"
HcDoOnDemandCompression="TRUE"
HcDoStaticCompression="TRUE"
HcDynamicCompressionLevel="9"
HcFileExtensions="htm
html
txt"
HcOnDemandCompLevel="9"
HcPriority="1"
HcScriptFileExtensions="asp
dll
php"
>
</IIsCompressionScheme>
<IIsCompressionSchemeLocation ="/LM/W3SVC/Filters/Compression/gzip"
HcCompressionDll="%windir%system32inetsrvgzip.dll"
HcCreateFlags="1"
HcDoDynamicCompression="TRUE"
HcDoOnDemandCompression="TRUE"
HcDoStaticCompression="TRUE"
HcDynamicCompressionLevel="9"
HcFileExtensions="htm
html
txt"
HcOnDemandCompLevel="9"
HcPriority="1"
HcScriptFileExtensions="asp
dll
php"
>
</IIsCompressionScheme>
<IIsCompressionSchemesLocation ="/LM/W3SVC/Filters/Compression/Parameters"
HcCacheControlHeader="max-age=86400"
HcCompressionBufferSize="8192"
HcCompressionDirectory="C:WINDOWSIIS Temporary Compressed Files"
HcDoDiskSpaceLimiting="FALSE"
HcDoDynamicCompression="TRUE"
HcDoOnDemandCompression="TRUE"
HcDoStaticCompression="TRUE"
HcExpiresHeader="Wed, 01 Jan 1997 12:00:00 GMT"
HcFilesDeletedPerDiskFree="256"
HcIoBufferSize="8192"
HcMaxDiskSpaceUsage="99614720"
HcMaxQueueLength="1000"
HcMinFileSizeForComp="256"
HcNoCompressionForHttp10="FALSE"
HcNoCompressionForProxies="TRUE"
HcNoCompressionForRange="FALSE"
HcSendCacheHeaders="TRUE"
>
</IIsCompressionSchemes>