QUOTE(cheerow @ Mar 10 2004, 01:03 AM)
Some data (audio or not) can't be compressed at all.
This might be extremely (!!!) rare for a natural audio signal but not absolutely impossible.
If you could compress
any data by just one byte, you could compress it again and again until you reach a zero byte file, which still deflates to the original data.

That would solve some problems...
You're completely correct for random data, however, I cannot imagine what an audio signal that had absolutely no redundancy in it would sound like. It'd be a hideous cacophony, I'd imagine.

To the original topic: The fact that special purpose compressors can get a rough average of about 2:1 lossless compression on audio is pretty darned good, actually. I don't think there's any real chance of hitting, say, 8:1 average lossless compression on real-life audio anytime soon, much less 10:1 as MP3 is (very roughly).
Compression can be increased only so much. There is always a point at which all the redundancy is removed from the signal, and there's no further room to compress it, with any algorithim. Given that they know the type of data in advance, special purpose algorithms can achieve higher compression than general purpose ones designed to compress most anything, but there's always a limit.
And as cheerow points out, no algorithm can compress everything. It's mathematically impossible. Any given set of N bits can only represent 2^N possible sets of bits, and that's just the way it is.