Note: the Windows NT Disk Administrator program can be used to reformat a disk to NTFS. It does not work -- Windows NT setup will need to reformat the disk anyway, so don't waste time with Disk Administrator!
You can probably skip the "exhaustive" disk examination, especially since you have just formatted the disk! The setup program will copy file to the hard disk and then reboot in the graphical NT setup program.
Links into Microsoft's Windows NT Server & Workstation 4.0 Frequently Asked Questions:
Links into IBM's Thinkpad Support page: