In '87 my first 256 computer had 640k of memory with a hd that was less than 1mb IIRC. It cost nearly 5 thousand dollars including the $700 dot matrix printer.
The IBM PC/XT, the first IBM PC to be delivered with a hard drive, already had a 10mb hard drive in 1983, so 1mb sounds too small for your hard drive. 1mb was roughly the capacity of a floppy disk.
My first PC (in 1991), a no-name luggable with a monochrome plasma display had a 200MB HD. I remember one of my former professors telling me it was nuts to get such a large hard drive, that I'd never fill it up. When I bought its replacement in 1994, the new computer had a 1G hard drive which I split into 200MB partitions with one partition dedicated to a copy of the old computer's hard drive.