I thought, before resorting to anything drastic, I would see if anyone else has experienced this problem....
I bought an A1200 board off Ebay, and as stated there seems to be some sort of problem with the floppy controller.
I finally got KS3.1 ROMs for it today, plugged them in and get the beloved "insert disk" screen. I cannibalized a friend's A500 for the power supply and floppy drive. The drive powers up and does it's initial spin. With the cable backwards, the drive spins constantly, so some signal is making it through the cable. Alas, (with the cable on correctly, of course) the system never attempts to read my WB disk, and sits waiting for a disk.
So, my question is, is there something else I can try before I resort to replacing Paula?