Hi
Have a look to the Aminet (
http://ftp.uni-paderborn.de/aminet/dirs/hard_hack.html), there are several descriptions of how to patch a PC-floppy drive to work as Amiga floppy drive (internal or external).
The A500 floppy should fit from the cables and functionality, but I don't know if it fits physically into the A1200.
Noster