i like it on for vocals, but definitely not in the auxes. (hell, before V2, i was splitting the mics into separate channels just to allow for comp'ed front vox and un-comp'ed monitors!)
4:1 seems to be the right zone for vocal smoothing, with fastest attack and release, and the threshold adjusted to where it kicks in just a little with normal singing and a lot only with loud singing.
some smoothing for bass can be cool, like 2:1; you shouldn't need it for guitars, the amp already creates a natural compression.
i'll never compress an output unless it's an IEM mix, in which case i want it to be limited, so it never kicks in at all at normal levels but at anything over that it slams down hard to preserve hearing.