were both images named just Wild Arms?
Winhiip will not install 2 games of the same name.
And there is a way to defragment the drive, but you won't like it.
Extract and delete all the images and reinstall them. Everytime you delete a game you will need to either replace it with a same size game to fill the hole or extract all games after the removed game and reinstall. A royal pain, I know, for this is how I do it.
I of course I shrink as many games as I can and back-up the ISO files onto DVD (as ISO files sometimes up to 3 a disc.). Had a HDD go bad once and had to track down all the games before, and I don't plan on doing that again.
Other than that... uLE is not vary compatable with HDL partitions so I don't think it would be feasible to try to get a defragmenter up and running with it. Would be a nice feature, but at the moment not likely to happen.
PS3 Slim 320GB
PS2 v11 exploit w/300GB Maxtor
PS2 v10 exploit w/80GB Samsung - Network Games
PS2 v10 exploit w/60GB Samsung - Network Games
PSP 1001 3.52M33 w/10GB total storage
NDS DSReal 4GB