Vista has a feature called 'superfetch' which pre-caches applications in memory so they're never actually loaded from disk. Also, it's hard to tell, but if this computer has sufficient RAM, you could conceivable load everything directly from memory.
Also, the fragmentation test was a little dubious. A computer that new would have very little file fragmentation, so of course defragging would be fast.
That said, it was an entertaining video!