Yeah, those specs for the ThinkPad power supply might actually be just fine. I've heard of people successfully using ThinkPad power supplies to run their empegs, although I don't know if they were that exact model or not.

And a faint warm-electronics smell coming from the display is normal. The display is actually heated by the cathode filament wires.

I don't know if the hard disk failed because of the power supply or not. But definitely go through this entire FAQ entry to find out if the problem is a disk or if it's just one of the other usual things (cable crimp or solder joints on the IDE header).