mjt,
The reason why I wanted you to report back the numbers is because I suspected that your capacity would be 1.99 GB, as you stated it was. I too had the exact same problem as you on an IBM Intellistation I purchased about a year ago. After investigating the problem further, I discovered that the manufacturer had chosen to install NT using the FAT file system. In a nutshell, FAT disk partitions can't be greater than 2048 MB or approximately 2 GB. Once Windows gets installed, it can eat up 50% of that space by itself.
In my case, IBM also installed a bunch of other stuff along with Windows NT on that same 2 GB partition like electronic books, proprietary diagnostic software, and all sorts of other stuff. So even though it was a brand new machine, it only had about 400 MB of available space on the C: drive, which I later found out was about enough to install MS Office and a few other programs. They didn't bother to set up additional partitions on that same disk. So the whole time I thought that the C: drive represented my entire 10 GB disk, when in fact it only represented about 1/5th of the available space on the drive.
If you don't already have a d: or e: drive, you'll have to create them yourself using NT's disk administrator. But one thing is for sure: you'll need to start removing some of the programs you have installed on your C: drive and reinstall them on another partition or a totally different hard disk to free up some of the disk space on C: that windows will need to perform its normal operations. Otherwise, your system could become pretty unstable.