PaperMario: I personally would REALLY suggest a better power supply, maybe you would be fine with a minimum setup, like you have.. but heat and power issues have dogged my fathers A1200 for years... granted, the 1260 probably runs cooler than '040's and '030's (maybe someone can verify) but not sure about the power needs of the '060, though. Mind you, even adding more RAM might be too much for the PSU....
I wish you the best of luck, Blizzard 1260's absolutly ROCK...
Me: A1200 PowerTower, 1260/50MHz 128MB fast RAM,8.5 GB IDE, 2.1 GB SCSI, OS3.9 w/BB 1 & 2
edit: Ack, I forgot... if you want to do any raytracing, or fractals, anything that uses a math co-processor, you need to get OxyPatcher for yer '060....