My wife has an IBM (Lenovo) laptop. I've noted that keeping it updated is quirky. I've had some update problems due to the laptop's drivers and/or other utilities not being current. I'd try using the IBM utility to make sure the laptop hardware is current. MS isn't good at that.
After getting the F11 restore (full factory format and reinstall) to work I went to the MS update site. This machine is running XP Pro SP1. I want to get the updates and install SP2.
At the MS update site I see many updates needed and I start the download. They all download but on install they hang. Restarting gives the same problem. So I pop the SP2 disk in the drive and start it. It extracts, starts the Inventory, and hangs. Laptop doesn't freeze, the install just stops. Even tried it in Safe Mode and it hangs either on the Inventory or the next item, I forget which one.
Any thoughts other than F11 again?