The end result is that you do get 1MB of chip RAM, but without further fixing, reset-resident system components won't work, i.e. "KickTagPtrs" and "KickTagMem" won't work. In specific, the RAD: ram drive is not reset-resident with 1MB chip and Kick 1.2 (and I believe also 1.3, this is an old and long-standing bug). With the arrival of Workbench 1.3, CBM included a hot-fix for this problem in SetPatch that essentially worked arond the problem, thus: Kick 1.2 plus 1.3 SetPatch or Kick 1.3 plus 1.3 SetPatch *will* work with 1MB chip mem, and will allow reset-resident programs.
Verified. SetPatch doesn't help here (I have the 1.3.3 setpatch). I just patched my 1.3 ROM to check for a max size of $200000 instead of $080000, burned a new EPROM, and now I have 1MB chip, a 1.3 ROM and a reset resident RAD.
Thanks for this crucial tip, I had forgotten all about it and spent an evening scratching my head and trying various things when my RAD always disappeared on reboot. :-)
Edit: and of course it was all in vain, as setpatch R would have been the answer. :-D