BladeRunner:
I agree whole heartedly with you on prefering Option 2, however, option 2 is NOT what the wonderful folks at Symantec have given us. As Christianb stated (and one can tell that he is quite justifiably ticked about this issue) The program has told me that it is not certified with SP3, fine, it's not certified with SP3, so I'll just go to live update, piece of cake.
Viola! I run Live update, and Live update does NOTHING! When you go to the Symantec website, one is quite uncerimoniously informed that (sticking nose up in a rather snobbish fashion) "We no longer support that version".
What the hell is THAT all about, I think Christianb hit the nail on the head when he suggests that Symantec is trying to annoy you into getting 2002.
Christianb:
As to your suggestion to use the native defrag.... I think it actually blows worse that Symantecs support. It may be just my humble opinion, but when I defrag, I prefer to defrag, not just move fragments around, which is OBVIOUSLY Micro$ofts preference.