create_compressed_fs: command not found

Maybe Your $PATH variable doesn't contain the default paths? echo $PATH should give something like:

[root@server ~]# echo $PATH
/usr/local/sbin:/usr/local/bin:/sbin:/bin:/usr/sbin:/usr/bin:/root/bin

If it's empty, You may set the PATH variable with this command

export PATH="/usr/local/sbin:/usr/local/bin:/sbin:/bin:/usr/sbin:/usr/bin:/root/bin"

On Debian possible default full paths are:

/usr/bin/create_compressed_fs - from package: cloop-utils

You may install the required package with command apt-get install {package}

Error in other languages:
create_compressed_fs: bevel nie gevind nie
create_compressed_fs: comandă negăsită
create_compressed_fs: comando não encontrado
create_compressed_fs: commande introuvable
create_compressed_fs: command not found
create_compressed_fs: käsku ei ole
create_compressed_fs: không tìm thấy lệnh
create_compressed_fs: komanda nerasta
create_compressed_fs: Kommando nicht gefunden.
create_compressed_fs: kommandot finns inte
create_compressed_fs: komut yok
create_compressed_fs: nie znaleziono polecenia
create_compressed_fs: níor aimsíodh an t-ordú
create_compressed_fs: no se encontró la orden
create_compressed_fs: no s'ha trobat l'ordre
create_compressed_fs: opdracht niet gevonden
create_compressed_fs: parancs nem található
create_compressed_fs: perintah tidak ditemukan
create_compressed_fs: príkaz nenájdený
create_compressed_fs: příkaz nenalezen
create_compressed_fs: команда не найдена
create_compressed_fs: командата не е открита
create_compressed_fs: 命令找不到
create_compressed_fs: コマンドが見つかりません