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Actually it doesn't free up more rrom on the partition. In terms of FAT the only problem is the amount of clusters it can address. Since FAT table is 16 bit, it can only address 65536 clusters. So if you have a 10G hard drive partition, then there the cluster size is 160KB. Which means for 10, on average, every file you will be wasting 80KB in average. Now 10G HD is tiny by today's standard. But still that's a lot of wates. Since for 10,000 files you will be wasting 800MB of space. Compare to if you have a 4K page size on NTFS, you will only be wasting 39MB of space.
But it is wrong to say a defrag will free more spaces, no it won't. Because the allocation is the same no matter what, and the space wasted for the file is the same no matter what. The difference however is performance. To create a new file on a highly fragmented disk, it means you will have to split the file up into many many pieces. In doing so, you have to go to many different prat of the hard drive to read that file. Now if the disk is defragmented, then files are continous, so you just read sequentially, faster, less hard drive head movement, and speedier file access. After all, the slowest part of HD is to move the head from one place to another.
And yes since for solid state memory, the access time is much faster than HD (no head movement, just read the address line and get the data). A defrag does not improve file access much unless you have tons and tons of small files that you constanted switch, update, delete, etc. That's rare. I've have some of my CF cards not formated, not defragmented, etc for years, they still work at about the same speed as I initially get it. If I don't defrag my HD, well I notice performence degradation very quickly.
As for worrying HD will go bad due to defragment, no way. These days IDE HD have a MTTF of 1,000,000 hours (like the Maxtor MaxLine III I'm using) That's more than 100 year if you use it 24 hours a day, 365 days a year. In fact I spead from experience. For the past 10 years, I've gone through tons of harddrives. I have some computer that's 24/7 on, there are some that are on just during work. But still the rate of failure is pretty even among them. The only one that I know failed a bit more easily is if the HD is constently under pressure yet wasn't cooled properly. They tends to go up in smoke a bit quickly. But if cooling is not an issue, the HDs really last a long time under constand read/write. So I won't worry about it.
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