I know this is an old thread but it was the first link in google so for everyone else who had this problem and don't want to spend money for something you already have just follow the tutorial below.
If your getting the error "cloning failed an error occurred while defragmenting the disk". It can be fixed by following the steps below.
1. Turn off internet
2. Disable windows firewall & anti virus software
3. Open disk manager ( [Windows Logo + R] diskmgmt.msc )
4. When Disk Manger Opens you will be prompted to initialize the disk. Select MBR not GBT. Then press finish.
5. Run program as admin.