I would first try using the newest version of JKDefrag, now renamed to MyDefrag and available at mydefrag.com. MyDefrag can move some files that JKDefrag cannot.
If that doesn't work, try booting into safe mode and running MyDefrag there.
As a last resort, you could boot from a CD or flash drive using something like BartPE or WinPE. When booted that way, none of the files on your system drive should be locked.
I ran MyDefrag on the drive and it seems to work.
about 96% of the files (I can see) are marked as unmovable.
It looks to me like a permissions problem. JkDefrag is a standard Windows application and is governed by standard Windows security. Which userid are you using to run JkDefrag? Does it have FULL permissions to these files?
Yes I do have full permission. Like I said, I was able to run JKDefrag about a year ago with no issues. I'm not sure what has changed. My computer has been acting kind of screwie lately. Like when I plug my MP3 player in, all the files on the ext drive suddenly disappear. I look at the properties of the drive and it shows it is filled at half capacity (like normal). Truecrypt says it can't find any file to mount. So I unplug the player and turn the drive off and back on and it works like normal again. So maybe the problem is more personal and not JKD. Oh well. As least MyDefrag works with it.