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Consider a Gaussian relay network where a number of sources communicate to a destination with the help of several layers of relays. Recent work has shown that a compress-and-forward based strategy at the relays can achieve the capacity of this network within an additive gap. In this strategy, the relays quantize their observations at the noise level and map it to a random Gaussian codebook. The resultant capacity gap is independent of the SNR's of the channels in the network but linear in the total number of nodes. In this paper, we show that if the relays quantize their signals at a resolution decreasing with the number of nodes in the network, the additive gap to capacity can be made logarithmic in the number of nodes for a class of layered, time-varying wireless relay networks. This suggests that the rule-of-thumb to quantize the received signals at the noise level used for compress-and-forward in the current literature can be highly suboptimal.