To mitchellmckain:
This is an
excellent assumption to make - the basis for all Relativity theory. Under that assumption you can successfully predict the results of any meaningful and relevant experiment you may care to do (in the context of this thread, at least). Nevertheless, it
is an assumption and not a fact. (If you believe it is a fact, see this thread:
Einstein's Clock Synchronization Convention. It is possible - but painful - to make alternative assumptions and still get the right answer.)
To come back to the original post in this thread, the reason IAN STINE's object shrinks isn't because the object itself has undergone some physical change, it is because the convention for measuring distance differs between the object's rest frame and some external observer. (You can call that "squashing of space" if you like, although I prefer not to.)