Hi Ralph,
Assuming that the original installation of Adagio went to the C: drive, there will be some system file paths that have C: hardcoded (ie the choice for the report tables drive). Simply copying program directories will not update these files, thus when you attempt to run workstation setup, it will give you warnings or errors regarding unexpected paths such as above.
When the system is changing so that users recognize the Adagio program drive as a different letter, you really should reinstall software just to be safe that everything updates OK.
If this were a brand new peer-peer install, then the setup you described is fine (of course substituting 'move the Softrak folder' with 'install Adagio'.