A while ago there was a little research project to find out exactly how fragmentation occurs on Windows XP. It was sparked by some users at a past trade show that mentioned that having all the free space defragmented prevented newly-created files from fragmenting, and it wanted to research if that was actually true.
Well, it turns out that Windows XP/2003 fragments files whether or not all the free space is defragmented. On an active volume, with a dynamic operating system and dynamic utilities, the disk volume free space situation is constantly changing. This, in conjunction with the algorithms used to allocate the free space, defeat the very best efforts of any defragmenter the very next time a person goes off and surfs the web.
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