This should answer your questions:
http://support.microsoft.com/kb/228198
Disk Defragmenter Analysis Shows More File Fragments Than File Size Suggests
John
Ray K wrote:
> After defragging the 50GB c: partition (will all applications closed except
> W2K's Disk Defragmenter), I looked at the report and saw that a file called
> \winnt\system32\config\software.log had 14 fragments. What's odd is that the
> file size is 4KB, the minimum allowed with NTFS. (Explorer shows the file
> size is only 1KB.)
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> How can a 4KB file have 14 fragments?
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