winace has the best compression algorithm of all programmes. but does it matter? the difference is minimal anyway. it's only interesting for really big files, and only if they are not compressed in any way (e.g., comressing mpeg files won't help much naturally)
I use WinRar but have both installed for the occasional .ace I come across! WinRar is supposed to be able to handle .ace files also but I have had a few that it didn't work with!
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