How is it that some of these online groups, such as the Aussie Group are able to play Doomsday online? Everytime I try, I get this annoying compression error, even when i send the other players the .eug/ .eugcfg files.
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If the players you send the save to are putting the files in the rght spot you shouldn't be having the compression error. Files go in Doomsday/Scenario/Save Games. If just one player hasnt done it correctly then the host will try and send the save and you get compression error. I guess you just gotta make sure that all your players are copying the save into the right place and that you are sending both files. 
Ahh, Chicken I just checked and I have a EUG file but the other one is bz2. I don't know why it is in that format nor do I know how to change it. That would explain it though.