Hello,
For hardware compression not working please contact hardware manufacturer for more information.
As you have installed latest drivers please check the configuration of the device:
How to troubleshoot issues with a Robotic Library or Tape Drive in Backup Exec 9.x and 10.0
http://support.veritas.com/docs/255501
Also on compression please see the technote:
http://seer.support.veritas.com/docs/199542.htm
Thanks,
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