Prepare to invest quite a lot of money if you _really_ want to expand your A1200. It's fun to do, though, and you will end up with very nice machine.
I have added tons of expansions myself and am running OS3.9. I still have (and will keep it that way!) my A1200 in its original case and will definitely not towerize it. The drawback for me is that I cannot use a graphicscard and will have to make do with AGA, thus creating a bottleneck for my system. This can be remedied for a large part by using only 4 colours on your workbench. 256 colour Workbench does look better, though... :-)
Anyway, if you want to take a look at an expanded A1200, just whistle. Schellinkhout is just around the corner, and you can reach Enkhuizen from there on your wenkbrauwen... ;-)