[napsak]

Thanks to extreme help and work, the compression is done.
Template used for dictionary was a list.
Here is compress code: This code is credited to Rui Wang

class compress
{
private:
        ifstream sourceFile;
        ofstream compressedFile;
        list<string> table;
        list<string>::iterator table_string;

        void initialize()
        {
                string c;

                for (int i=-128; i<128; i++)
                {
                        c = (char)i;
                        table.push_back(c);
                }
        }

        int searchTable(string str)
        {
                int pos = 0;
                bool strFouned = false;

                table_string = table.begin();

                while (table_string != table.end())
                {
                        if (str == *table_string)
                        {
                                strFouned = true;
                                break;
                        }
                        table_string ++;
                        pos++;
                }

                if (strFouned)
                {
                        return pos;
                }
                else
                {
                        return -1;
                }
        }

        void writeCode(int code)
        {
                int val;

                val = code/255;
                compressedFile.put((char)val);
                val = code%255;
                compressedFile.put((char)val);
        }

public:
        compress(char *inputFile, char *outputFile)
        {
                sourceFile.open(inputFile, ios::binary);

                if (!sourceFile)
                {
                        cout << "File could not be opened!" << endl;
                }

                compressedFile.open(outputFile, ios::binary);
                initialize();
        }
	~compress()
        {
                if (sourceFile)
                {
                        sourceFile.close();
                        compressedFile.close();
                }
        }

        void doCompress()
        {
                string buffer, tempString, c;
                int pos;

                buffer = sourceFile.get();

                c = sourceFile.get();
                while (!sourceFile.eof())
                {
                        tempString = buffer + c;
                        pos = searchTable(tempString);

                        if (pos == -1)
                        {
                                pos = searchTable(buffer);
                                writeCode(pos);
                                table.push_back(tempString);
                                buffer = c;
                        }
                        else
                        {
                                buffer = tempString;
                        }
                        c = sourceFile.get();
                }

                pos = searchTable(buffer);
                if (pos == -1)
		{
                        pos = table.size();
                }
                writeCode(pos);
        }
};

usage in main

compress *Compress = new compress(argv[2],argv[3]);

Compress->doCompress();

delete Compress;