Very odd. I just installed Defraggler and tried running it on a new HD where I've just installed Win7 Pro 64-bit plus my applications. Defraggler reports 38% fragmentation, and Microsoft's Disk Defragmenter reports 0% fragmentation (see attachment). They can't both be correct, and the discrepancy truly is alarming. With a fresh install, I have a hard time believing Defraggler, but 0% doesn't seem right either. Is there a tried and true utility I can run on Win7 to get another opinion?
Here's the missing attachment.
Windows Disk Defragmenter ignores Sys Vol Info files (and maybe other protected files). Your screen shot clearly displays fragments (the red blocks) because Defraggler reports ALL frags.
Defraggler reports 38% fragmentation, and Microsoft's Disk Defragmenter reports 0% fragmentation (see attachment). They can't both be correct, and the discrepancy truly is alarming.
If you have a huge file like pagefile.sys in only 2 big fragments on a fresh Win7 64 install it could account for most of the fragmentation you're seeing. I think from what I can see, the Windows defragger ignores fragments above a certain size, correctly regarding the extra disk seeks as insignifiant to disk read performance.
Have a look at the file list, large files in only a few fragments can increase the headline fragmentation % alarmingly.