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Event ID: 5118 Source: MSSQLSERVER

Source
Level
Description
The file "<file name>" is compressed but does not reside in a read-only database or filegroup. The file must be decompressed.
Comments
 
The ldf and mdf files are compressed. In my case I had to go to C:\Program Files\Microsoft SQL Server\MSSQL.3\MSSQL\DATA and right click each file, click advanced and uncheck Compress to save disk space. I was then able to start my services and connect to the SQL database.

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