I've excluded several folders from defrag, it's pointless defragging system restore files, error reports (\WER), temporary files (including internet caches) and a few others. Unfortunately O&O still rates the drive with those folders included, always showing around 24% fragmentation on the 95Gb Vista partition. So numbers can be meaningless.
You may think your HDD paging file is now off, but if Vista is anything like XP, it will over-ride your setting if it needs extra paging space.