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I'm curious as to why a blank (as in formatted) drive would show it has Movable files and folders or even Unmovable when I run the Windows 7 defrag tool on the drive.

C:\windows\system32>defrag E: /H /A /V
Microsoft Disk Defragmenter
Copyright (c) 2007 Microsoft Corp.

Invoking analysis on 8GB_DISK (E:)...


The operation completed successfully.

Post Defragmentation Report:

        Volume Information:
                Volume size                 = 7.46 GB
                Cluster size                = 4 KB
                Used space                  = 62.96 MB
                Free space                  = 7.40 GB

        Fragmentation:
                Total fragmented space      = 0%
                Average fragments per file  = 1.10

                Movable files and folders   = 23
                Unmovable files and folders = 12

        Files:
                Fragmented files            = 0
                Total file fragments        = 0

        Folders:
                Total folders               = 11
                Fragmented folders          = 0
                Total folder fragments      = 0

        Free space:
                Free space count            = 4
                Average free space size     = 1.80 GB
                Largest free space size     = 4.27 GB

        Master File Table (MFT):
                MFT size                    = 1.00 MB
                MFT record count            = 1023
                MFT usage                   = 100%
                Total MFT fragments         = 2

        Note: File fragments larger than 64MB are not included in the fragmentation statistics.

        You do not need to defragment this volume.
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The Recycle Bin is empty. – Rodney Jul 30 '13 at 14:56
    
dir /a E:\ reveals no files or folders. attrib e:\ does the same – Rodney Jul 30 '13 at 14:56
    
chkdsk /f e: shows no errors nor change. – Rodney Jul 30 '13 at 15:56

Most of these are special files, which hold information on the partition itself. For example, $Bitmap is the successor of the FAT found in old FAT partitions. It keeps a record on the usage of space on the partition. There are more than $Bitmap, for example $Journal, but still I think 35 files are more than just these internal files. System Restore could be to blame, it puts some files in \SystemVolumeInformation. EDIT: $Mft counts too.

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