I got a copy of Kindwords with my A500 and it works. IIRC, Kindwords is basically a cut down "light" version of Wordworth, but if it works on an A500, it should work on an A1200 with no issues at all.
With that said, I really like FinalWriter 97. I run it on eUAE and it's great: it has nice support for long, structured documents and the interface is great. It comes with a nice selection of fonts which play nicely with both PostScript and lower-end printers.
