"Boot Couldn't Find NTLDR" error message during Windows NT Server 3.1 setup program

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If you attempt to install Windows NT to a machine that has a bootable partition that is formatted as FAT and has reached the limit of 512 files on the root directory, Windows NT Setup will be unable to copy NTLDR to the root of drive C. If NTLDR cannot be copied to the root of drive C, you will receive the following error: You will not be given the option to exit Setup at this point, and Setup will resume. When you are prompted to restart at the completion of the text mode portion of Setup, you will receive the following error as Windows NT attempts to load the graphical portion of Setup: To work around this problem and successfully continue the setup of Windows NT, perform the following steps:

1. Restart the machine with an MS-DOS system disk.
2. Delete one or more files from the root of drive C.
3. Expand NTLDR._ from either Disk 1 of the Windows NT setup floppy disks, or from the \i386 directory of the Windows NT CD-ROM, to the root of drive C.
   
   NOTE: EXPAND.EXE is compressed on both the Windows NT setup floppy disks and the Windows NT CD-ROM. You can, however, use EXPAND.EXE from MS-DOS 6.0 or Windows 3.1.
4. Remove the MS-DOS system disk and restart the machine, which should bring the system back to Setup.

NOTE: Similar problems may occur with the file NTDETECT.COM. The four steps outlined above should also solve this problem.