Hello.
I had the same problem on my CentOs server and what I did (This is awhile ago) was
1. cut out the text that W3tc adds to your .htaccess file (and save)
2. Put the contents into my yoursite.conf fle
3. Copy this and paste into your .conf file (at the bottom) ( I can’t remember where I patched this solution from, but it works…)
#BEGIN TJ custom cache
<IfModule mod_deflate.c>
# Insert filter
SetOutputFilter DEFLATE
# Netscape 4.x has some problems...
BrowserMatch ^Mozilla/4 gzip-only-text/html
# Netscape 4.06-4.08 have some more problems
BrowserMatch ^Mozilla/4\.0[678] no-gzip
# MSIE masquerades as Netscape, but it is fine
# BrowserMatch \bMSIE !no-gzip !gzip-only-text/html
# NOTE: Due to a bug in mod_setenvif up to Apache 2.0.48
# the above regex won't work. You can use the following
# workaround to get the desired effect:
BrowserMatch \bMSI[E] !no-gzip !gzip-only-text/html
# Don't compress images and other stuff
SetEnvIfNoCase Request_URI \.(asf|asx|wax|wmv|wmx|avi|bmp|class|divx|doc|docx|exe|gif|gz|gzip|ico|jpg|jpeg|jpe|mdb|mid|midi|mov|qt|mp3|m4a|mp4|m4v|mpeg|mpg|mpe|mpp|odb|odc|odf|odg|odp|ods|odt|ogg|pdf|png|pot|pps|ppt|pptx|ra|ram|swf|tar|tif|tiff|wav|wma|wri|xla|xls|xlsx|xlt|xlw|zip|ASF|ASX|WAX|WMV|WMX|AVI|BMP|CLASS|DIVX|DOC|DOCX|EXE|GIF|GZ|GZIP|ICO|JPG|JPEG|JPE|MDB|MID|MIDI|MOV|QT|MP3|M4A|MP4|M4V|MPEG|MPG|MPE|MPP|ODB|ODC|ODF|ODG|ODP|ODS|ODT|OGG|PDF|PNG|POT|PPS|PPT|PPTX|RA|RAM|SWF|TAR|TIF|TIFF|WAV|WMA|WRI|XLA|XLS|XLSX|XLT|XLW|ZIP)$ no-gzip dont-vary
# Make sure proxies don't deliver the wrong content
Header append Vary User-Agent env=!dont-vary
</IfModule>
#END TJ custom
4. Uncheck the browser cache checkbox in the W3Tc setup
5. Restart your apache server.
OR…..
Just paste this at the bottom of your .htaccess (I don’t know if you’re on shared hosting)
#BEGIN TJ custom cache
<IfModule mod_deflate.c>
# Insert filter
SetOutputFilter DEFLATE
# Netscape 4.x has some problems...
BrowserMatch ^Mozilla/4 gzip-only-text/html
# Netscape 4.06-4.08 have some more problems
BrowserMatch ^Mozilla/4\.0[678] no-gzip
# MSIE masquerades as Netscape, but it is fine
# BrowserMatch \bMSIE !no-gzip !gzip-only-text/html
# NOTE: Due to a bug in mod_setenvif up to Apache 2.0.48
# the above regex won't work. You can use the following
# workaround to get the desired effect:
BrowserMatch \bMSI[E] !no-gzip !gzip-only-text/html
# Don't compress images and other stuff
SetEnvIfNoCase Request_URI \.(asf|asx|wax|wmv|wmx|avi|bmp|class|divx|doc|docx|exe|gif|gz|gzip|ico|jpg|jpeg|jpe|mdb|mid|midi|mov|qt|mp3|m4a|mp4|m4v|mpeg|mpg|mpe|mpp|odb|odc|odf|odg|odp|ods|odt|ogg|pdf|png|pot|pps|ppt|pptx|ra|ram|swf|tar|tif|tiff|wav|wma|wri|xla|xls|xlsx|xlt|xlw|zip|ASF|ASX|WAX|WMV|WMX|AVI|BMP|CLASS|DIVX|DOC|DOCX|EXE|GIF|GZ|GZIP|ICO|JPG|JPEG|JPE|MDB|MID|MIDI|MOV|QT|MP3|M4A|MP4|M4V|MPEG|MPG|MPE|MPP|ODB|ODC|ODF|ODG|ODP|ODS|ODT|OGG|PDF|PNG|POT|PPS|PPT|PPTX|RA|RAM|SWF|TAR|TIF|TIFF|WAV|WMA|WRI|XLA|XLS|XLSX|XLT|XLW|ZIP)$ no-gzip dont-vary
# Make sure proxies don't deliver the wrong content
Header append Vary User-Agent env=!dont-vary
</IfModule>
#END TJ custom
W3TC tries to do the same thing but this calls Deflate directly. Try it and see if it works for you.