compressing and editing will not solve the problem - if you are the host or the webmaster... it will only solve the problem of the person downloading the warez.
reason: they pics will still take space on the disk, no-one will see the page/ads anyway (they download the pics with software), the bandwidth (lots of it) will still be consumed (and paid for...); so the ONLY person who is not going to benefit from this is the end user, while the webmaster/host still pay the price.
the only way is to detect those files, and remove them at upload. i know that all the big freehosts do that already. at least those i worked with (smutserver, sexplanets etc.)
i can recomend you, however, to use payinghost.com system instead of a freehost, because it is entirely behind a dialer. this way, you can sit and pray that lots and lots of people will come to your host and download this crap all day, while you are getting rich!
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