You know, researching this problem, I found that you really do not need to defrag unless you see an Application Event stating that you need to defrag. Otherwise, to run a defrag, you are just verifying the integrity of the DB and freeing up some white pages. It is also recommended that you do a full backup prior to and then once after.
If you run out of space you can add hard disks to the server (scsi or ide), map a network drive, or copy the DB onto another server and run it there. But you would have to copy it back.
BM