File Vault Issue with Migration Assistant

I've just spent 24hrs sorting out the mess this process left. Migrated - apparently successfully - my file vault protected home folder / user account from my old G4 466MHz 30Gb machine running 10.3.8. Everything ran perfectly until I tried to import my 30Gb iTunes library from a separate hard drive. A screen popped up telling me I only had 10Gb of space available in my home folder, whereas the Mac HD showed 580Gb available. Spoke to Applecare, who advised me to switch off file vault and then turn it on again. Did this, but when I switched it off it mashed a lot of data. Address book info vanished, Mail Boxes vanished, Safari bookmarks vanished, then Mail would not run at all. Nightmare. The chap at Applecare said File Vault is more trouble than it's worth. All sorted by creating a new admin account on the machine and re-loading from backups. My question is this; File vault retrieves unused disk space in the home folder at shutdown. How important is this? I thought it kept the machine running nice and smoothly. If I leave it switched off, will I experience speed loss over time?
24" iMac   Mac OS X (10.4.10)   750Mb / 2.3GHz / 2.5Gb RAM
24" iMac   Mac OS X (10.4.10)   750Mb / 2.3GHz / 2.5Gb RAM

I've just spent 24hrs sorting out the mess this process left. Migrated - apparently successfully - my file vault protected home folder / user account from my old G4 466MHz 30Gb machine running 10.3.8. Everything ran perfectly until I tried to import my 30Gb iTunes library from a separate hard drive. A screen popped up telling me I only had 10Gb of space available in my home folder, whereas the Mac HD showed 580Gb available. Spoke to Applecare, who advised me to switch off file vault and then turn it on again. Did this, but when I switched it off it mashed a lot of data. Address book info vanished, Mail Boxes vanished, Safari bookmarks vanished, then Mail would not run at all. Nightmare. The chap at Applecare said File Vault is more trouble than it's worth. All sorted by creating a new admin account on the machine and re-loading from backups. My question is this; File vault retrieves unused disk space in the home folder at shutdown. How important is this? I thought it kept the machine running nice and smoothly. If I leave it switched off, will I experience speed loss over time?
24" iMac   Mac OS X (10.4.10)   750Mb / 2.3GHz / 2.5Gb RAM
24" iMac   Mac OS X (10.4.10)   750Mb / 2.3GHz / 2.5Gb RAM

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