Reset your system restore and defrag again. To do this right click on My Compuer, choose Properties. Then when System Properties opens click the System Restore Tab. Place a checkmark in Turn off System Restore. click ok. You will get a message telling you that you are turning it off, say ok or yes. Whatever is the correct answer. Sysem Restore will shut down. Wait a minute and then go back in and take the checkmark out. This way all those fragmented files in there should be gone.
Try a defrag in Safe Mode. But as Cauz said...not much is going to really speed this drive up...you only have 8% free space...I have told you before this is NOT ENOUGH.