When the When compressed, delete original file box is checked, a precompressed file is replaced with a placeholder file which is used to signify that a compressed version of the file has been placed into the "~Compressed files" folder. Whenever files are precompressed, this folder is used to contain the compressed versions of the files.

Use this option to reduce the total amount of space needed to contain a large number of precompressed files. You can browse the files with SpeedShare. Copy the files (automatically decompressing them) by dragging them to SpeedShare or Finder windows.

If you want the original file to be decompressed, just double-click the placeholder file (it has the same name as the original).