If using ssh or scp with the following flags -C the process will die with
"no matching comp found: client zlib server none"
if the server has Compression disabled.
The output with -v is as follows.

OpenSSH_3.4p1, SSH protocols 1.5/2.0, OpenSSL 0x0090602f
debug1: Reading configuration data /usr/local/etc/ssh_config
debug1: Applying options for *
debug1: Rhosts Authentication disabled, originating port will not be trusted.
debug1: ssh_connect: needpriv 0
debug1: Connecting to wildcard [10.0.1.2] port 22.
debug1: Connection established.
debug1: identity file /root/.ssh/identity type 0
debug1: identity file /root/.ssh/id_rsa type 1
debug1: identity file /root/.ssh/id_dsa type -1
debug1: Remote protocol version 1.99, remote software version OpenSSH_3.4p1
debug1: match: OpenSSH_3.4p1 pat OpenSSH*
Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_3.4p1
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
no matching comp found: client zlib server none
debug1: Calling cleanup 0x80643e4(0x0)

Some older systems. Notably Linux with a 2.2 kernel cannot have Privledge User
support and Compression enabled at the same time. Atleast on my system it cannot.