Failed defragmentation?

Well, don't know how to really describe it so I'll give my best:

I have a USB drive (2GB) and I use it pretty much all the time. I have to store my portable programs data on it as well as a backup of one big file. The problem is that the big file has to be deleted and re-copied every week, and the small files get fragmented (especially if I add a new portable program), bug Defraggler, for some odd reason, refuses to sort out the aparently empty folders in the USB drive, as shown in these screenshots

1_105.png

2_36.png

Am I doing something wrong or is this a software bug? (I tried: seperate file defragmentation, normal defragmentation, free space defragmentation)

A flash drive doesn't need to be defragmented. It's nearly a random access memory so it (nearly) doesn't matter how many parts the file got and were it's located. On the other hand on flash drive write counts reduce the livetime, so you really don't want to defrag this kind of drives.