Please don't quote in backwards order.
http://wiki.ursine.ca/Best_Online_Quoting_Practices
R. McCarty said:
In addition, when a drive ( with a single partition/volume ) reaches a
high % of use you'll start to notice performance degrading. This is due to
the fact that performance across the entire surface of a drive is not
linear.
That's only part of the story: Fragmentation is only your enemy if the
filesystem has no internal method to deal with it efficiently. At this
point, the only filesystems that don't deal with fragmentation efficiently
still in circulation are ntfs, vfat and msdos. However, the root of the
problem has more to do with the fact that Windows only supports ntfs, vfat
and msdos filesystems. Pretty much every other filesystem has some sort of
understanding a block device's nonlinear nature and fragments files to
favor best disk performance; a 90% full filesystem performs generally as
well as a 90% empty filesystem. On such filesystems, defragmenting is not
necessary (even considered harmful).
The real shame in this is that there's no reason Windows can't or shouldn't
support other, better filesystems other than vendor lock-in.