2 drives is max on internal ide port...4 drives is max if u have an 4 way adapter
2 drives per cable (if a 4way adapter)
use any sized hdd , but FFS and os3.0/1 has certain limits , so i think u should consider getting os3.5 or 3.9 .
anyway tell us more and i will try and help as much as possible.
a1200 is a great machine ..