So I have been sporadically working on my pet project OpenNOP which stands for (Open source Network Optimization Platform).  Several months ago I re-branded it from its former name of PacketSqueezer as it was to very similar to another open source project that I had been testing called TrafficSqueezer.  
Originally I was using PacketSqueezer as an example on how similar results could be achieved without having to write an entire custom kernel.  Something I really didn't like was having to compile a custom kernel to use TrafficSqueezer.  Some of us just want to install and go.
I am really not a programmer so its mostly just me fumbling around.  So if you are a programmer with some networking skills please spare a few cycles and check out the code.  Its all uploaded at 
http://www.sourceforge.net/projects/opennop.  I could use the code review and if you want to work on this just let me know.  I would love to see it mature and become the open source alternative to "insert expensive commercial WAN acceleration solution here".