If you want 512 KB more free, you only have to take the jumper out.
My Blizzard 1260 has 128 MB of RAM. One in the Blizzard and the other in the SCSI-kit.
The SCSI-kit is one of the finest SCSI controller you can get for your Amiga 1200.
@ChaosLord: You could have more than 32 MB of RAM, if you have an additional SIMM socket.
Here is the link:
http://www.amiga-hardware.com/showhardware.cgi?HARDID=111