I found out that DiscountASP.Net does not have a proxy server on their end. That is what I thought so I left the settings blank. Playing around with the custom editor settings didn't fix the problem either.

Followed your suggestion. Now I get the following:

Description: An unhandled exception occurred during the execution of the current web request. Please review the stack trace for more information about the error and where it originated in the code.

Exception Details: System.NullReferenceException: Object reference not set to an instance of an object.

Source Error:

[NullReferenceException: Object reference not set to an instance of an object.]
   DotNetNuke.HttpModules.Compression.Settings.GetSettings() +443
   DotNetNuke.HttpModules.Compression.CompressionModule.CompressContent(Object sender, EventArgs e) +375
   System.Web.SyncEventExecutionStep.System.Web.HttpApplication.IExecutionStep.Execute() +68
   System.Web.HttpApplication.ExecuteStep(IExecutionStep step, Boolean& completedSynchronously) +75

Server Error in '/DNN' Application.

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Object reference not set to an instance of an object.

Version Information: Microsoft .NET Framework Version:2.0.50727.3082; ASP.NET Version:2.0.50727.3082