I ran my disk defragmenter in Wnidows XP and I have 3 large files, all between 1.32 and 1.34 GB in size that are fragmented files but will not defragment.

They are all the part 1 throught part 3 nks files according to my defragmenter report. I would assume that this might cause my system to slow down but does anyone know how to fix this or what kind of impact this is having on my performance?

If you want to move those files to an external hard drive, you can defragment your drive, then return the files to the same location, and you shouldn't get that report.

Since those files are made up of all the VDL2 encoded samples, it's possible that the files are just confusing your defrag utility. I'm not certain how it views those files. If you place those back into a nicely cleaned, defragged drive, I think they should be performing as well as they should.

Also in addition to defragmenting your drive, you may find some of the tips on how to optimize XP to work well with audio programs helpful. There's a posting about it here:
https://www.tapspace.com/forums/viewtopic.php?p=2390