problem with apache 2 + mod_deflate

[Ajay Kamble]

I was trying to setup mod_deflate compression in my apache server. I used the code given here: http://httpd.apache.org/docs/2.0/mod/mod_deflate.html

Compress everything except images

<Location />
# Insert filter
SetOutputFilter DEFLATE

# Netscape 4.x has some problems...
BrowserMatch ^Mozilla/4 gzip-only-text/html

# Netscape 4.06-4.08 have some more problems
BrowserMatch ^Mozilla/4\.0[678] no-gzip

# MSIE masquerades as Netscape, but it is fine
# BrowserMatch \bMSIE !no-gzip !gzip-only-text/html

# NOTE: Due to a bug in mod_setenvif up to Apache 2.0.48
# the above regex won't work. You can use the following
# workaround to get the desired effect:
BrowserMatch \bMSI[E] !no-gzip !gzip-only-text/html

# Don't compress images
SetEnvIfNoCase Request_URI \
\.(?:gif|jpe?g|png)$ no-gzip dont-vary

# Make sure proxies don't deliver the wrong content
Header append Vary User-Agent env=!dont-vary
</Location>

The problem that I have is I access URL http://localhost/myapp but when mod_deflate is on it redirects to http://www.localhost.com/myapp which fails.

How can I resolve this issue?

-Regards
Ajay