Hi Amazing.
What OS and roms are on your 1200?
Until I installed OS3.5, I couldn't read certain CD formats either. The CD was probably burned using Joliet and your OS can't read it.
You don't know how to format a floppy?
if youre in Win Explorer, when you click on A: and from the menu choose format, you can choose either 1.4 or 720k unless your PC has WinXP. Anything below that can format 720k. Better use your Amiga DD disks, don't use HD floppies.