Getting error 500.52 when creating reverse proxy with url rewrite

Question

I have used the following technique for achieving Url rewriting.

http://weblogs.asp.net/owscott/archive/2013/10/24/creating-a-reverse-proxy-with-url-rewrite-for-iis.aspx

However i am getting the error

 HTTP Error 500.52 - URL Rewrite Module Error.

Outbound rewrite rules cannot be applied when the content of the HTTP response is encoded ("gzip").

I have disabled static compression. Have also added this to my web.config on the internal server where i want a redirection:

 <system.webServer>
    <urlCompression doStaticCompression="false" doDynamicCompression="true" dynamicCompressionBeforeCache="false" />
</system.webServer>

I am trying to do url rewriting from an external ip say : 41.76.89.165/mywebsite to 192.168.154.21/mywebsite

Please someone help