diff --git a/glasnost-web/code/webhandler.py b/glasnost-web/code/webhandler.py
index 588dca82..c4b2e314 100644
--- a/glasnost-web/code/webhandler.py
+++ b/glasnost-web/code/webhandler.py
@@ -212,7 +212,7 @@ class Application(applications.Application):
                 lastModTime = time.gmtime(os.stat(_req.filename)[-2])
                 try:
                     return self.outputStaticFile(
-                        req, staticFile.read(), lastModTime)
+                        req, staticFile, lastModTime)
                 except IOError, error:
                     if error.errno in (errno.EACCES, errno.EISDIR):
                         return HTTP_FORBIDDEN
@@ -416,7 +416,7 @@ class Application(applications.Application):
                     lastModTime = time.gmtime(os.stat(staticFilePath)[-2])
                     try:
                         return self.outputStaticFile(
-                            req, staticFile.read(), lastModTime, mimeType)
+                            req, staticFile, lastModTime, mimeType)
                     except IOError, error:
                         if error.errno in (errno.EACCES, errno.EISDIR):
                             return HTTP_FORBIDDEN
@@ -768,19 +768,28 @@ class Application(applications.Application):
         except ImportError:
             gzip = None
 
-        if gzip and req.headers_in.has_key('Accept-Encoding'):
+        if type(data) is type(''):
+            fileSize = len(data)
+        else:
+            fileSize = os.fstat(data.fileno())[6]
+        if gzip and fileSize < 1000000 and \
+                req.headers_in.has_key('Accept-Encoding'):
             value = req.headers_in['Accept-Encoding']
             if value.find('gzip') != -1 and value.find('gzip;q=0') == -1:
+                if not type(data) is type(''):
+                    data = data.read()
                 zbuf = cStringIO.StringIO()
                 zfile = gzip.GzipFile(mode = 'wb',  fileobj = zbuf)
                 zfile.write(data)
                 zfile.close()
                 data = zbuf.getvalue()
+                del zbuf
                 req.headers_out['Content-Encoding'] = 'gzip'
+                fileSize = len(data)
         if lastModTime:
             req.headers_out['Last-Modified'] = time.strftime(
                 '%a, %d %b %Y %H:%M:%S GMT', lastModTime)
-        req.headers_out['Content-Length'] = '%d' % len(data)
+        req.headers_out['Content-Length'] = '%d' % fileSize
         # TODO: could also output Content-MD5
         if lastModTime and req.headers_in.has_key('If-Modified-Since'):
             # we don't want to use bandwith if the file was not modified
@@ -795,11 +804,21 @@ class Application(applications.Application):
             req.content_type = mimeType
         req.send_http_header()
         if req.method != 'HEAD':
-            try:
-                req.write(data)
-            except IOError:
-                # the user probably cancelled the request
-                return OK
+            if type(data) is type(''):
+                try:
+                    req.write(data)
+                except IOError:
+                    # the user probably cancelled the request
+                    return OK
+            else:
+                try:
+                    t = 1
+                    while t:
+                        t = data.read(1000000) # 1MB chunks
+                        req.write(t)
+                except IOError:
+                    # the user probably cancelled the request
+                    return OK
         return OK
 
     def parseHttpPath(self, remaining):