Ok, I was able to hook up the Pico to another known to be good A1200 and it worked just fine, no problems. So, the other motherboard had problems for certain.
Too bad, cause the only thing wrong with it seems to be the audio. HD, PCMCIA, video, lyra 2 keyboard all worked.
It is old though. It's a rev 2B, a real Commodore built MB. I bet it can be fixed...