How do you deal with lots of small files?

Question

A product that I am working on collects several thousand readings a day and stores them as 64k binary files on a NTFS partition (Windows XP). After a year in production the

Answer 1

I have seen vast improvements in the past from splitting the files up into a nested hierarchy of directories by, e.g., first then second letter of filename; then each directory does not contain an excessive number of files. Manipulating the whole database is still slow, however.