Embodiments of the invention provide a file system that can store files or data streams in such a manner as to increase the effective storage capacity of the device on which the files or data stream are stored. In one embodiment, a system for processing and storing data comprises a first processing module configured to receive data directed to the system, the data comprising a first portion and a second portion; a second processing module configured to store the first portion of the data within a data storage device and remove the second portion of the data; a third processing module configured to retrieve the first portion of the data from the data storage device, the first portion of the data being combined with filler data to form reconstituted data; and a fourth processing module configured to send the reconstituted data to an output device.