Hi PZ.
The issue of what you want equipment you want to put in the 1200, is what you're going to do with it.
If all you're going to do with it is play the occasional game, then a 68030 accelerator with a little RAM is going to suit you to a T.
Whether you want to get a regular laptop harddrive or use a compact flash adaptor, it doesn't really matter. CF's have the advantage of no noise, no heat, and relative speed advantages. 4 gig harddrives are dirt cheap though, so it doesn't hurt your wallet.