I recently started using
NanoZip (w/self-extracting module) for large archives, the algorithm of choice being "optimum 2" with RAM usage of 1024 MB. Amazingly, it compresses better (in 100% of cases in my experience)
and faster than 7-Zip's LZMA. Decompression is a bit on the slower side, but then again so is LZMA.
One of the most useful things about heavy-duty compression is a large dictionary. Dictionary size basically indicates how large can a repeated character sequence be to be recognized as a repeated sequence. WinRAR, which is my general purpose archiver of choice (it's largely on par with 7-Zip in terms of compression ratio and speed, yet it still has a better interface), limits its window to 4 MB, which means the archive will be scanned for repeating sequences no longer than 4 MB, thus decreasing the amount of RAM required for compression. Legends says this is a means to ensure no problems with non-tech-savvy users working in corporate environments on computers with small amounts of RAM. I don't know whether this is true, but this is a major reason it falls short of 7-Zip's results in terms of compression ratio. It is better suited for compressing media files, though (PCM files in particular, akin to FLAC).