I can hear the drive spin, but the HDD Led is always lit. Is that normal ?
This usually happens if a drive is connected to the IDE bus which is not recognised by the driver.
Did I miss something somewhere ?
Many modern drives have the problem that they spin up too slowly and thus don't react quick enough to be recognised. The only solution for this is to install Kickstart 3.1 ROMs.
Some drives also do spin down when they receive a reset signal and then again react too slow, so that they are not even recognised after a Ctrl-A-A reset. This can be cured by cutting the reset line from the IDE cable.
Is it possible the IDE port is dead ?
Yes, it's possible, but not likely.
Any way to test that ?
Use a HDD which definitely works in another A1200 with the same configuration (same Kickstart).