Should I copy the 060/040 libraries to LIBS: drawer before plugging the 1260 in? Is that all I need to do in order to make the Bliz 1260 to work?
With OS 3.9 it's very easy - you just need 060 library and Setpatch loads it; with lower versions you need the stub 040 library that recognizes the CPU/card and then loads the right library (040/060/040old).