I often have to gather log files and upload them to a central server (Owned by another company). The central server has a size limit of the file, so I am trying to create the smallest file possible that is still in the zip format.
What are the best setting to use when compressing a text file to a zip format when my only need is a small file size?

I've done the obvious and chosen ultra compression, and I have noticed that LZMA does a better job than deflate, but there are far too many other permutations of options for me to test them all.
Deflateformat, it's not a "normal" .zip file anymore, but an "extended" zip file, pioneered by WinZip. They originally kept the extension as .zip, to much consternation (since most normal zip-handling tools can't deal with them), but most archivers use .zipx now to distinguish them from traditional .zip files. If you can use LZMA, switch to .7z and pick PPMd -- it should compress better (and faster!) for text files. – afrazier May 20 '11 at 16:04