Gzip Compression Breaks AJAX on DotNetNuke 5.6 with Medium Trust

One of my own DotNetNuke Websites is hosted under Godaddy (a shared hosting provider with Medium Trust). While playing with settings, i noticed that module action buttons does not load because of unknown AJAX issue.

I tried to visit Event Viewer to check to see whether any record logged. However, there was none. Then, i decided to compare a working website (this one too hosted under Godaddy) with faulty one... I came to realize that setting Compression to GZIP was killing the AJAX.

Only after setting compression to none, AJAX loaded fine. I believe, DotNetNuke compression should exclude AJAX for certain roles.