"Im using just a normal PAL TV, which is fine on my A500 and A600. I tried the A520 modulator and still no joy."
mhhh . . so the external RF modulator works fine with your A500 and A600, right? but NOT with your A1200? right?
Try to start the A1200 with both mouse button pushed and see if the "EarlyStartup" screen is showed.