Will it Defrag completely if you run it from Safe Mode, or if you try a Clean Boot?
How to start Windows 8 in Safe Mode
http://www.bleepingcomputer.com/tutorials/start-windows-8-in-safe-mode/
How to perform a clean boot to troubleshoot a problem in Windows Vista, Windows 7, or Windows 8
http://support.microsoft.com/default.aspx/kb/929135
If a program like Norton is the possible cause it may be necessary to uninstall such a program to properly test whether such a program is the cause.
Will the Defrag work if you enable the built-in Administrator and run it via that user?
This EXAMPLE (ONLY) might or might not work for you with your Defrag program it uses the built-in Administrator account to perform it?
"It seems that the "Run as administrator" command only gives you some administrative privileges, and they're not enough to install Java (and OpenOffice, by association). In order to get around this, you need to actually log into the built-in administrator.
Open a Command Prompt (Admin) with admin rights by using the Windows Key + X and selecting that option. At the prompt, type:
net user administrator /active:yes
Then log out of your regular account and back in as the built-in administrator, where you might be able to install the update. When you're done, log back into your regular account and, for security purposes, disable the built-in administrator account using:
net user administrator /active:no "