TDE is "Transparent Data Encryption". It is a feature in SQL2008. MS says that with encrypted databases, there is no compression in the MS compressed db backups. Question is whether SQL Litespeed can compress TDE databases and what is the compression relative to a non-encrypted database backup?
None.
The backup won't compress significantly. Encrypted data is random and random data does not compress well. Level 1 may be the best setting for testing, to avoid unnecessary CPU utilization.
SmartDiff can reduce backup size considerably (separate from compression).