I just received my PQI 4GB CF card today from Digi4Me (only $84.) It came formatted FAT32 so I had to reformat it on the XP machine to FAT: I had to use the Disk Manager and I received a warning that the allocation units would be > 32k. I also had to change the filesystem in the CF0 mountlist from l:CrossDOSFileSystem to l:fat95. Now it recognizes the CF card as a 4GB drive. I will be copying stuff over to it to make sure it really works, but right now c:info recognizes it as 4008MB, 561 used, 8209536 free, 0% used.
I could possibly format it with the proper cf0: to FAT as well. I am going to try that, too, and see how the transfer between PC-Amiga works.
My next step is to put it inside the 1200 and get it rigged as a CF hard drive to replace my current 512MB card.