whitespace remove using HtmlCompressFormat(content)

was asking my hosting company how to get rid of whitespace his answer was to use the framework where everything runs throught index.cfm ie
 

http://www.cflib.org/udf.cfm?ID=812
 
<cfsavecontent variable="content">
your normal index.cfm content here
</cfsavecontent>
<cfoutput>##</cfoutput>


could anyone explain this method to me mainly is this some i have to do or does this just work, i have read it speed up the page load time, but how when i has to do something extra?
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pigmentartsAsked:
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SidFishesCommented:
You can use

<cfprocessingdirective suppresswhitespace="yes">

It must be placed in the first 4096 bytes of your page

http://livedocs.macromedia.com/coldfusion/6.1/htmldocs/tags-b15.htm
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pigmentartsAuthor Commented:
PS I have tried using it like above but all i get is:

 Variable HTMLCOMPRESSFORMAT is undefined.
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