Oh boy...
This is actually a mixed bag.
For individual use, Windows defrag is fine, but you need to run it multiple times since it is not a single pass defragmenting tool.
With Windows Vista, I believe it is a scheduled task and the process is automated, so you should never have to worry about it.
As far as XP, Automated tools that defrag during idle moments, screen savers, or schedules... Raxco PerfectDisk is a single pass defragmenter.
You run it once, it runs fast, and you are done.
Also, PerfectDisk will take care of offline files.
Diskkeeper is the alternative. It has a lot of internet buzz, but is inferior to PerfectDisk since it is a multiple pass defragmenter.
Multiple Pass = More than One Run to complete
Single Pass = Finished after One Run
For a business, I would argue that scheduled automated Defragmentation is essential to computer health and PerfectDisk is a great tool.
For home users, just run your normal defrag tool once a month and go to sleep happy.
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