A1200s came with either no hd or a variety of sizes depending on what you wanted. My first A1200 came with an 80MB hard drive. I have three hard drives on my 1200, an internal 550MB and two external 2.1GB SCSI. I did try once putting a 1GB internal IDE 3.5" but struggled with power. I then reduced the capacity and fitted external 2.1GB drives given that anything above 4GB would have to be partitioned to sacrifice that last part of the drive given the issues with Workbench 3.0. There is plenty written on the forum about partitioning hard drives for the 1200.
PS Its all a bit hit and miss and you can work the hd to work. I guess 3.5 just mucked that up and the HD is now not fooling the 1200. That power supply is a problem though and many of the original 1200s could not power bigger drives, particularly when supporting other devices. That is why I fitted an SCSI Kit to my 1200 and powered drives from external boxes.