The drive doesn't have to be broken.
What kind of disks are you inserting? Does the Workbench disk work, for example? Most older games are stored on "non-dos" disks which means that they use their own kind of file system and boot block. To use PC floppies you'll have to mount the pc0 driver (in storage/dosdrivers). And the A1200 has a DD drive only, so HD floppies won't work.
The clicking noise is a well-known feature of the amiga disk drives. There are lots of "noclick" patches available on aminet (
http://www.aminet.net), which is the biggest Amiga freeware/PD/shareware archive in the world.
