I'm currently using a Blizzard 1260 with the black PSU and an internal 2.5" hard drive. It works fine with a 3.5" hard drive, too.
However, I had problems with the original PSU that came with my first A1200D, I had to replace that one with an A500 PSU. This was when I used an Apollo 1240 card with a fan.
Perhaps there are differences between the white A1200 PSUs too, although I'm not sure about that.
