I just bought a 20 GB 2.5" IDE HARDDRIVE and when I installed it into my amiga 1200 bad burning smell and smoke puffed out of the A1200 vending hole. I was scared like no tomorrow, as soon as I opened the case I noticed one line of the 2.5" IDE cable is pitch black and burned down. there is no other damage except a bad smell from the HD and the cable itself. Did this fry my Amiga 1200? I am not so sure if the HD is dead either.
I've done this too, a few years back. The cable was around the wrong way just as Karlos mentioned above. In my case the Amiga was fine (I still have one pin darker than the others however), and the cable was dead and cremated. Sadly the drive was dead too but I've heard of other drives surviving this so fingers crossed for you.