This is what microsoft has to say
(included text is cut from technet knowledge base)
Option Pack Installation Conflicts with Service Pack 4
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The information in this article applies to:
Microsoft Windows NT Server version 4.0 SP4
Microsoft Windows NT Workstation version 4.0 SP4
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SYMPTOMS
When you install Windows NT Option Pack on a computer that already has Windows NT 4.0 Service Pack 4 installed, the following error message is displayed:
Setup detected that Windows NT 4.0 SP4 or greater is installed on your machine. We haven't tested this product on SP4. Do you wish to proceed?
Click OK to continue the installation. After the setup program has completed and the computer has restarted, you can reapply Windows NT 4.0 Service Pack 4.
NOTE: The following error message may also be displayed:
This setup utility is designed to run on Windows NT server. Please click OK to exit.
During the unattended installation of Windows NT Option Pack, this pop-up notification message causes the installation to stop. The INF file for the unattended installation of Windows NT Option Pack does not contain any parameters for acknowledging this pop-up message, which causes the unattended installation to not be successful.
CAUSE
This problem occurs because Windows NT Option Pack was released before the service pack and these messages indicate there may be a conflict among file versions between the two. When Windows NT Option Pack is installed, the setup program checks the OS to confirm that SP3 is installed. If SP3 is not installed, the installation stops. If the version check results in versions later than SP3, such as SP4, the pop-up notification message is displayed.
RESOLUTION
A supported fix that corrects this problem is now available from Microsoft, but it has not been fully regression tested and should be applied only to systems experiencing this specific problem. If you are not severely affected by this specific problem, Microsoft recommends that you wait for the next Windows NT 4.0 that contains this fix.
To resolve this problem immediately, contact Microsoft Product Support Services to obtain the fix. For a complete list of Microsoft Product Support Services phone numbers and information on support costs, please go to the following address on the World Wide Web:
http://www.microsoft.com/s
WORKAROUND
To work around this problem and ensure your computer has the most updated files, perform one of the following:
Install Windows NT Option Pack before installing the service pack.
Reinstall the service pack after completing the Option Pack installation.
STATUS
Microsoft has confirmed this to be a problem in Windows NT 4.0.
MORE INFORMATION
Copy the content from the Windows NT Option Pack CD to a network share location, and then replace the Iis.dll and Preload.exe files from the Windows NT Option Pack CD with the Iis.dll and Preload.exe files from the hotfix zip file.
Additional query words: ntop sp4
Keywords : kbbug4.00 kbfix4.00
Version : winnt:4.0 SP4
Platform : winnt
Issue type : kbbug
Last Reviewed: September 27, 1999
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by: phoosePosted on 1999-10-16 at 22:49:37ID: 2133135
First thing first, when installing option pack on an NT workstation it actually installs per-web services (stripped down option pack) but the error message you recieve about service pack four is harmless install the option pack and then reinstall sp-4 and you should be good to go