Don't quote me on this, but I think the PCMCIA slot is mapped into the same memory addresses as the simple add on memory adapters (So they can't both work at the same time), whereas an accelerator card maps this extra memory elsewhere. The work around is then to use an accelerator card ! I have 32Mb on my accelerator card, and a PCMCIA ethernet card working fine.
This is indeed correct. The adress space of the 68EC020 cpu in the A1200 is 16 MB, containing 2 MB chip ram, 8 MB fast ram and 6 MB other stuff (rom, chips, whatever).
The only work around is an accelerator card which is PCMCIA-friendly (most, but not all of them, are). If you don't want to use an accelerator card, you can't use more than 4 MB fast ram.