How to accept a compliment without sounding like a pompous fool (and how to use up all your $.50 words in one go):

Him: Thank you for your compliment, by the way
Me: You're welcome. It's true.
Him: I don't know how to respond to that.
Him: err,
Me: Thank you?
Him: 'Thank you' sounded like I'm saying 'Yeah I'm smarter than you, thanks for noticing.'
Him: You're sweet to say so.
Him: There.
Me: Perfect!
Me: 'Thanks for the compliment' implies no judgement either way on the validity of the statement, except an appreciation of the sentiment behind it.
Him: Ahh. Good one.
Me: Wow, lots of big words. Kristin's feeling ... um ... I think I used up all my words.