Have you try to power off your Amiga 1200 and try it again to format a disk?
You could try to clean your diskdrive.
If this doesn't work than you have to replace the diskdrive.
The Saddam virus will only effect disks when using kickstart 1.2 or 1.3.
In the future, you try some disks from your friend, use VirusZ or Viruschecker to check on viruses first.
