The standard archive format on unix, equivalent to zip on the PC. Tar Gz is a composition of two things: tar is a file format which jams multiple files together in one (originally devised for use in making tape archives) and gzip is a compression system (gzip is short for GNU zip; gzip's compression algorithm is essentially the same as in PC zip). A Tar Gz is what you get when you tar some files and then gzip the tar.
Most windows-based compression software (such as Win Zip) can handle Tar Gz archives.
Tar Gz is technically inferior to but more widely comprehensible than the Tar Bz 2? archive format.
Kind of related is a page about the author of LHA?, which is badly translated from Japanese and states among other things that the handling of a soft hat or a document is made easy:
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