Jim,
SETFILENOMOVE is a fairly innocuous procedure - even though it touches system files. It's perfectly safe to run it, worst case is it will fail to set the NOMOVE bit on files which are locked. It can't upset any running processes.
I'd suggest you just run SETFILENOMOVE and watch for errors. Check any files which report a SET failure - it's possible they're already set to NOMOVE (I think it's done as part of an installation or upgrade).
You'll then know exactly what needs setting, and can reasonably judge the risks. (indeed, if a file is open all the time, or frequently enough that you can't find a window to execute a SET FILE/NOMOVE against it, then any attempt by DFG to defrag that file will also fail).
> absolutely not going to defragment the
> system disk?
Famous last words!
I would strongly recommend AGAINST installing DFG without running SETFILENOMOVE, regardless of any intention to not run DFG on the system disk. Having seen some cases of system disk scrambling due to incorrect defragging (by products other than DFG), it's not pretty and you really don't want to take that risk.
A crucible of informative mistakes