How does that work? Is the page sent gzipped and my computer un-gzips it? (and what specifically does that..do browsers do that?)

Yep. The browser sends an "Accept-Encoding" header as part of its request (with a list of what it supports). And the server can respond back with one of the encodings listed. Most modern browser support compression I believe.

Thats pretty kickin. If I made websites for a living I would look into that further.

gzipping saves bandwidth at the cost of cpu cycles. So it may or may not be a good idea, depending on what you are trying to save.

Most people who work on large scale websites know about it :)

  58667 digg-orig.html
  14585 digg-orig.html.gz
  58560 digg-noegg.html
  14524 digg-noegg.html.gz

61 bytes.

Yep, I remembered about compression after I posted.

So did you have anything to do with this hidden message? :p

I knew about it, not much more than that. Timeless, our dba, put it in (digg user philovivero).