K guys/girls , as adhering to the rules of this forums i am posting a conclusion and solution to end this thread officially. Firstly I would like to thank PC_Fanatic for his useful advice and references. ( Thank a lot bro (>_<)b. ) And zepper for his suggested solution but didn't work

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Last solution tested before ending this thread was what zepper adviced. Using Windows ME scandisk and defrag.exe with exactly the 4 methods I used for Windows 98SE testing both did not work i still get the same error so i will not bother posting the links to this files.
-Conclusion-
Windows 98SE and Windows ME scandisk and defrag .exes do NOT support drives larger then 127.53GB. If using FAT32.
-Solution-
Tested/Workable Solution :
Do a scandisk in dos ( you have to reboot to DOS-Mode, using DOS-prompt in Windows will not work. You will hit the same error )for HDD drives larger then 127.53GB you can't defrag in DOS but if you are using the HDD for data storage like me i don't think it reallys matters if you can defrag or not.
Suggested Solution :
1.Parition your drive to allow a maxium of 127.53Gb per partition best if its only 120GB allow some space for errors. You do not want to be like me after shifting 65GB of data for 5hrs and find that you cannot defrag because of the 127.53GB limitation again ~_~; .
2.Change OS as what PC_Fanatic has said FAT32 system is really outdated. Change to the XP series.
Although I have ended this thread. Please if you have any more advice or suggestions and solutions to this problem feel free to post under this thread again. Technology is always changing o.O. Me ending this thread is just that I will not be replying that often due to time constraints when new solutions advice are given.