Defraggler just won't defragment

Hi, I recently ran a full defrag, but the % fragmented went up from 8% to 35%! Now, no matter how many times I defrag, it stays at 35% fragmented. What should I do? I'm using the latest version, and running on a Conpaq laptop with Windows 7 Home Premium x64. I noticed on the file list a HUGE (26.5 gb) file in System Volume Information...

Sounds like the defrag set off your computer's VSS (Volume Shadow Copy Service) which backs up your system, adding to your fragmentation.

well, i ran a defrag with the VSS disabled, but it STILL stayed at 35% after a full defrag...

Did you remove the old restore points? Defraggler may not be able to touch them.