Harry Potter  writes:

> Just a query:
>
> Does anybody have any ideas on how to tweak LZW to make it better?  I did the
following:
>
> *  I used a one-bit flag to determine whether I'm compressing using LZW or
not.
> *  I only took into account only literals already used.
> *  I only used enough bits to uniquely write a literal already used or a LZW
dictionary entry.

Well, Wikipedia
(https://en.wikipedia.org/wiki/Lempel%E2%80%93Ziv%E2%80%93Welch#Variants)
lists a few variants like LZMW, LZAP, LZWL which might be worth looking
into.

Other than that, maybe LZMA or LZSS might be interesting? I believe LZSS
has been implemented on 65xx and Z80 processors, at least the
uncompressing part.

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