C partition is dead

Hello,

I am getting annoyed with my c drive that houses my OS and prog files.
I have a 500 gb seagate pata hd and have several partitions.
As usual,i created a 50gb partition and formatted it and installed win xp 1,2,3 on it.The other partitions are about 100gb each.
Recently,i noticed that i need to defrag C drive once a week even tho i seldom use it.It has 30gb free space and i seldom play games or OC my pc and that makes me frustrated when it offer slow response.I tried windows disk check and repair and then defrag,it worked and i can see only blue sections,no red.Then a week later,i see big chunks of red and lots of thins bars of red on the diagram and windows told me that i should defrag it.
I lost hope with windows and used defraggler.It workd well and no red bars were seen.A week later and it spread thick and fast all over the results window.
I can only deduce that C partition is beyond help and now,i need an expert's advice.

I will move all data to E,next partition.

I will try to move windows and all prog files to D.Is this possible?

To move,win xp and prog files from C to D while C is running seems impossible right?
To me,C is kaput,a total failure and best kept out of my life.
D will be my new partition that houses the OS and prog.If this method does not work,then i have to try a fresh install of xp in D.
Well guys,what do you think?Am i correct or do you have a better idea?
Thanks for you input!

first off if you drive in in bad shape then you cold have file damage so new instal in not a bad way if you have time

changing os to new partition is not a bad way to do it

i would make a full back up to usb or dvd media and kill all the partitions and do a full format of the compleat drive, scan it for errors and restore your sytem from the backup. but an unstable drive is just that and should be replaced you could replace it for £40 - £50 could save you a lot of time in the long run