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Please Help with status formula field based on Effective date and Expiration Date

Any ideas how to make the compile size smaller or otherwise accomplishe what I want?

 

I need to set a text type status formula field based on Effective Date and Expiration Date (Both are Date formats that are formula fields themselves derived from text fields with values like 20090527) .  This is what I have and the error message - I'd like to solve this without needing to wait for Summer 09 if possible.  Any ideas appreciated.

 

Error: Compiled formula is too big to execute (6,419 characters). Maximum size is 5,000 characters



IF(
    AND(  
           E_O_Policy_Effective_Date_Format__c   < TODAY() ,
           E_O_Policy_Expiration__c  > TODAY() 
           ),
"1", "3")