@pubzombie
Hello. Well it sounds like you have a confusing setup. Or at least one I'm not familiar with. Let me get this straight. You boot your A1200 with a floppy bootdisk called WBLite and have some kind of flash memory card in the PCMCIA slot?
Does it have special drivers to mount the card as a drive? Well if so then that is no noob setup! :-D
Reformatting the card as FFS or SFS should help but if it needs to be mounted then that will complicate things and it might not detect it. What I suggest would be to get a CF-to-IDE converter which converts a compact flash card to work like an IDE HD and then use a 3.5" to 2.5" adaptor for the A1200 IDE port. Okay I can see that sounds complicated but it would allow you to boot off the CF card like a HD and use it as a kind of SSD type drive.
Or even a PCMCIA to IDE converter if one exists. Or just use a notebook HD. :-) The A1200 has a notebook style IDE port on the internal IDE.
An external FAT PC drive wasn't designed for Amiga except when sharing common files with both. So I doubt it would help. Perhaps some sample file sizes of some..err samples would help. ;-) And how much space was left after the first run?