diff --git a/libntfs-3g/attrib.c b/libntfs-3g/attrib.c
index 12ea369e..d41526bd 100644
--- a/libntfs-3g/attrib.c
+++ b/libntfs-3g/attrib.c
@@ -465,9 +465,13 @@ ntfs_attr *ntfs_attr_open(ntfs_inode *ni, const ATTR_TYPES type,
 		 * inode (for named data streams). The compression mark
 		 * may change any time, the compression state can only
 		 * change when stream is wiped out.
+		 * 
+		 * Also prevent compression on NTFS version < 3.0
+		 * or if cluster size > 4K
 		 */
 		a->flags &= ~ATTR_COMPRESSION_MASK;
-		if ((na->ni->flags & FILE_ATTR_COMPRESSED)
+		if ((ni->flags & FILE_ATTR_COMPRESSED)
+		    && (ni->vol->major_ver >= 3)
 		    && (ni->vol->cluster_size <= MAX_COMPRESSION_CLUSTER_SIZE))
 			a->flags |= ATTR_IS_COMPRESSED;
 	}
@@ -3704,6 +3708,7 @@ int ntfs_attr_add(ntfs_inode *ni, ATTR_TYPES type,
 
 add_attr_record:
 	if ((ni->flags & FILE_ATTR_COMPRESSED)
+	    && (ni->vol->major_ver >= 3)
 	    && (ni->vol->cluster_size <= MAX_COMPRESSION_CLUSTER_SIZE)
 	    && ((type == AT_DATA)
 	       || ((type == AT_INDEX_ROOT) && (name == NTFS_INDEX_I30))))
@@ -4673,6 +4678,7 @@ static int ntfs_attr_make_resident(ntfs_attr *na, ntfs_attr_search_ctx *ctx)
 	 */
 	if (!na->data_size
 	    && (na->type == AT_DATA)
+	    && (na->ni->vol->major_ver >= 3)
 	    && (na->ni->vol->cluster_size <= MAX_COMPRESSION_CLUSTER_SIZE)
 	    && (na->ni->flags & FILE_ATTR_COMPRESSED)) {
 		a->flags |= ATTR_IS_COMPRESSED;
diff --git a/libntfs-3g/dir.c b/libntfs-3g/dir.c
index 9c827657..5505c9be 100644
--- a/libntfs-3g/dir.c
+++ b/libntfs-3g/dir.c
@@ -1397,7 +1397,16 @@ static ntfs_inode *__ntfs_create(ntfs_inode *dir_ni, le32 securid,
 		ni->flags = FILE_ATTR_SYSTEM;
 	}
 	ni->flags |= FILE_ATTR_ARCHIVE;
+		/*
+		 * Set compression flag according to parent directory
+		 * unless NTFS version < 3.0 or cluster size > 4K
+		 * or parent directory is root directory (this is to
+		 * avoid problems with boot loaders).
+		 */
 	if ((dir_ni->flags & FILE_ATTR_COMPRESSED)
+	   && (dir_ni->mft_no != FILE_root)
+	   && (dir_ni->vol->major_ver >= 3)
+	   && (dir_ni->vol->cluster_size <= MAX_COMPRESSION_CLUSTER_SIZE)
 	   && (S_ISREG(type) || S_ISDIR(type)))
 		ni->flags |= FILE_ATTR_COMPRESSED;
 	/* Add STANDARD_INFORMATION to inode. */