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Farty compressor

+1 to Bongo. Rack effects have the advantage of being designed to be effects-loop friendly (it's rare that they're not), so give it a shot.

I normally prefer modulation after distortion, regardless of the source of distortion, but you can get some different (but cool) sounds with modulation before distortion.
 
bongomania,

I believe Mystric already addressed it.

Pedal units are intended be used before the amp with the lower level from the bass. Not the FX loop where levels are at line level.

It's not always the case, though. There are pedals that do work in the effects loop just fine.

Also, to address another point you made: you said the compressor should be the first and not the last unit. That's not universally true. There are numerous circumstances where it'd be more appropriate elsewhere in the chain. Mainly, it has to do with the other effects you're using. Compression doesn't just benefit your clean sound... it can be used to "tame" or stablize unruly effects with large volume spikes or variance.

Mainly, I addressed the effects loop issue because it seemed that everyone accidentally overlooked it in the OP (probably because the signal chain he drew doesn't match what he actually said).