The HDD uses a special caddy which you absolutely need if you want to upgrade the drive. Inside, standard 44-pin laptop drives. I think the maximum size they can take is 3.2GB. You also can still found caddies (+/- drives inside) on ebay. They are compatible with the caddies for Thinkpad 760 and 765.
And one last caveat: if you install Win98 on it, and yours has the Mwave sound/modem combo card, sound and modem will not work in Win98 unless you have the very latest BIOS. That'sbecause all previous BIOS revisions had a bug that prevented that card from working under 98. However, the BIOS file cannot be flashed unless you have both an AC adapter connected, AND a fully charged battery. The last requirement is absolute and as far as I know cannot be circumvented. The batteries in these laptops are at this point almost 30 years old and dead. Even the occasional listing on ebay for "new" TP755 batteries will be dead. So unless this machine has already been upgraded to the latest BIOS, you won't have sound in Win98.
https://www.thinkwiki.org/wiki/Category:755CX
I/O, I/O,
It's off to disk I go,
With a bit and a byte
And a read and a write,
I/O, I/O