Hi Dennis,
If I understand you correctly you did the following:
1) Install NT from CD
2) Install the ADSM client
3) Do a full restore (Subdir=yes Replace=All) of the C: drive
Am I correct??
I did this and ADSM refused to replace .DLL, .EXE and .FNT files which were in 
use by Windows NT. This caused the PC to hang after rebooting and I had to 
repair the bootpartition using the Windows NT disks.
I was using Windows NT 4.0 and I tried resoring it to the state before the 
format which was Windows NT 4.0 SP3. I tried using both the GUI and the 
commandline interface.
Kindest regards,
Eric van Loon