My mod gzip proxy isn't gzipping

[l008comm]

So if you have verizon and want to use your phone's web browser, you have to pay an extra $5 a month. Or, if you own your own server, you can set up your own web proxy and set the phone to use that instead, and pay nothing (but minutes) to use your phone's browser. So I set up a proxy and it was all working great. Then I figured it would speed things up if I installed mod_gzip on the proxy. I use gzip compression through php for all of my own web sites, but for all the non compressed sites out there, this would speed me up. Plus I could use it when I was connecting to the internet from my ibook, using the cell phone as a modem, not just when using the phones browser. So I installed mod_gzip, and modified my .conf file for the proxy, but it doesn't compress. It proxy's no problem; but no compression.

Here is my .conf file. It is partially premade by apple's Server Admin application.

<VirtualHost *:8888> 
ServerName proxy 
ServerAdmin [e-mail] 
ProxyRequests On 
CacheRoot "/var/run/proxy" 
CacheSize 1024 
CacheLastModifiedFactor 0 
CacheGcInterval 24 
ProxyRemote [homepage...]  [google.com...]  
<IfModule mod_ssl.c> 
SSLEngine Off 
SSLLog "/var/log/httpd/ssl_engine_log" 
SSLCertificateChainFile "/etc/httpd/ssl.crt/ca.crtX" 
SSLCertificateFile "/etc/httpd/ssl.crt/server.crtX" 
SSLCertificateKeyFile "/etc/httpd/ssl.key/server.keyX" 
SSLCipherSuite "ALL:!ADH:RC4+RSA:+HIGH:+MEDIUM:+LOW:!SSLv2:+EXP:+eNULL" 
</IfModule> 
<IfModule mod_dav.c> 
DAVLockDB "/var/run/davlocks/.davlock100" 
DAVMinTimeout 600 
</IfModule> 
<Directory "proxy:*"> 
AuthName "Proxy" 
<Limit PUT DELETE PROPPATCH MKCOL COPY MOVE LOCK UNLOCK> 
Require no-user 
</Limit> 
<Limit GET HEAD OPTIONS CONNECT POST PROPFIND> 
Require user proxyuser 
</Limit> 
AuthType Basic 
</Directory> 
<Directory "/www/l008com/webservices"> 
Options +ExecCGI -Includes +Indexes 
<IfModule mod_dav.c> 
DAV On 
</IfModule> 
</Directory> 
<IfModule mod_rewrite.c> 
RewriteEngine On 
RewriteCond %{REQUEST_METHOD} ^TRACE 
RewriteRule .* - [F] 
</IfModule> 
<IfModule mod_alias.c> 
</IfModule> 
<IfModule mod_gzip.c> 
mod_gzip_on Yes 
mod_gzip_temp_dir /tmp 
mod_gzip_keep_workfiles No 
mod_gzip_minimum_file_size 500 
mod_gzip_maximum_file_size 5000000 
mod_gzip_maximum_inmem_size 1000000 
mod_gzip_min_http 1000 
mod_gzip_handle_methods GET POST 
mod_gzip_item_exclude reqheader "User-agent: Mozilla/4.0[678]" 
mod_gzip_item_include file .html$ 
mod_gzip_item_include file .shtml$ 
mod_gzip_item_include file .htm$ 
mod_gzip_item_include file .shtm$ 
mod_gzip_item_include file .php$ 
mod_gzip_item_include file .phtml$ 
mod_gzip_item_include file .pl$ 
mod_gzip_item_include handler ^cgi-script$ 
mod_gzip_item_include handler proxy-server 
mod_gzip_item_include mime ^text/html$ 
mod_gzip_item_include mime ^text/plain$ 
mod_gzip_item_include mime ^httpd/unix-directory$ 
mod_gzip_item_exclude mime ^image/ 
mod_gzip_dechunk Yes 
mod_gzip_add_header_count Yes 
mod_gzip_send_vary On 
</IfModule> 
CustomLog "/logs/l008com/logs/proxy.access.log" "%h %l %u %t \"%r\" %>s %b" 
ErrorLog "/logs/l008com/logs/proxy.error.log" 
ErrorDocument 404  
LogLevel warn 
DocumentRoot "/www/l008com/webservices" 
</VirtualHost>