I'm using WordPress 3.0 and latest version of W3TC, on a Doreo shared hosting account (they seem to be using not Apache, but Litespeed which has most features, including .htaccess). Am on Chrome on Mac.
I had gzip enabled, and the site worked properly. Upon enabling CSS minify, the CSS file gets created and linked from page source header, however, it doesn't get loaded. I tried accessing the minified CSS URL, and automatically, a .gz file was downloaded, double-clicking which gave me the minified CSS file.
When I disabled gzip, minify worked and I was able to access the minified CSS file linked from header.
Any solution to make them both work together?