I'd like to make a partition for keeping ISO images of nightly builds. Most of files will be bigger than 1Mb. Unfortunately ext2/ext3/ext4 supports only 4Kb blocks.
# mkfs.ext4 -b 1048576 -L DISTR -m 0 /dev/sdb1
mkfs.ext4: invalid block size - 1048576
Is there any other reliable filesystem that can be used in order to reduce fragmentation?

-m 0is certainly not what you want. As jofel said, that reserved space is used to reduce fragmentation. Also, if you had a 1MB block size and stored a 1.00001MB file, it would consume 2MB of disk space. – jordanm Jan 15 at 18:48