Compress database backups in SQL Server 2000 & 2005

A question by interviewer asked about compressing the database backups taken in SQL Server 2000 and SQL Server 2005.  
SQL Server 2008 has the Backup Compression feature built-in. 


But in SQL Server 2000 & SQL 2005 there is no such feature. Hence this has to be done using third party compression tools.

But i collected this script flog one of website:
Just try it and give me the working status...
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set nocount on

    if exists (Select name from sysobjects where name='trcfiles')

    drop table trcfiles

    create table trcfiles (files varchar(100))

    go

    truncate table trcfiles

    go

    insert into trcfiles(files) exec master..xp_cmdshell 'dir D:\MSSQL\MSSQL.1\MSSQL\Backup\*.bak /OD /B'

    go

    DECLARE @filename varchar(200)

    DECLARE @CMD varchar(1000)

    DECLARE trc_cursor CURSOR FOR select top 1 * from trcfiles where files is not null

    open trc_cursor

    FETCH NEXT FROM trc_cursor INTO @filename

    WHILE @@FETCH_STATUS=0

 

    begin

        IF (SELECT COUNT(*) from trcfiles where files is not null) < 2 goto stopit

        SET @CMD = 'D:\MSSQL\MSSQL.1\MSSQL\Backup\7z\7z.exe a D:\MSSQL\MSSQL.1\MSSQL\Backup\' + @filename + '.zip D:\MSSQL\MSSQL.1\MSSQL\Backup\' + @filename

        --print @cmd

        exec xp_cmdshell @cmd

        SET @CMD = 'del D:\MSSQL\MSSQL.1\MSSQL\Backup\' + @filename + ' /Q'

        --print @cmd

        exec xp_cmdshell @cmd

        FETCH NEXT FROM trc_cursor INTO @filename

    end

 

stopit:

    close trc_cursor

    deallocate trc_cursor

    drop table trcfiles

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