Kirk,
You must configure on both ends of the network
http://www.cisco.com/en/US/customer/docs/ios/qos/configuration/guide/config_cb_hdr_comp_ps6350_TSD_Products_Configuration_Guide_Chapter.html
In a typical network topology, header compression is configured at both a local router and a remote router. If you configure class-based RTP header compression (or class-based TCP header compression) on the local router, you must also configure RTP header compression (or TCP header compression) on the remote router.
However, when you configure either RTP or TCP header compression on the remote router, you can choose one of the following:
•You can configure class-based RTP or TCP header compression on the remote router (by using the instructions in this module)
or
•You can configure RTP or TCP header compression directly on the interface of the remote router (by using the instructions in the "Configuring RTP Header Compression" module or the "Configuring TCP Header Compression" module, respectively).
Note If you configure RTP or TCP header compression directly on the interface of the remote router, you must specify the iphc-format keyword for PPP and HDLC interfaces. For Frame Relay interfaces, the iphc-format keyword is not supported; only the Cisco proprietary format (that is, the cisco keyword) is supported.
hope this helps.
raymond