This is an error where windows reports that freespace is being reported in the MFT sectors
this is a neglible problem as the when the mft removes references the mft reports the old reference as free space
doing a boot time defrag to defrag and clean up old mft references using perfect disk 7.0 can cure this
i myself have the problem, where it tells me to restart and do an offline chkdsk
offline chkdsk doesn;t report a problem but if you do a windows chkdsk 2x in a row the first reports an error where as the second reports no problems
this is a windows bug found in 2000/XP on ntfs drives, and Server 2003 appears to have this problem fixed
microsoft have replied to over thousand cases of this by saying its a bug that cannot be fixed
sometimes this error causes files to be misplaced as well causing the file to disappear off the drive
if this is happening to you download the trial of perfect disk 7.0 and defrag and clean the mft
i actually started getting this error after removing 2 files each 4.38 gbs in size
the 8gb chunk removed from the drive results in a large amount of space marked as free in the mft
other causes of this are also Norton Goback becoz of the way it handles its own repair file
before i removed the 2 files chkdsk reported no problems at all
chkntfs also reports a clean drive
hope this helps anyone who has the CHKDSK discovered free space marked as allocated problem