Ok, I was able to hook up the Pico to another known to be good A1200 and it worked just fine, no problems. So, the other motherboard had problems for certain.
Too bad, cause the only thing wrong with it seems to be the audio. HD, PCMCIA, video, lyra 2 keyboard all worked.
It is old though. It's a rev 2B, a real Commodore built MB. I bet it can be fixed...
The A1200's were (or ARE) as succeptable to Audio Circuit damage through faulty capacitors as much as Amiga 4000's. Put your nose directly to the motherboard, and sniff the capacitors (I am not joking here), Electrolyte smells like strong cat piss. When I got my 4000 fixed (Audio), the repairer sent me back the caps he replaced, and that is the best description of the smell.