1. I will be requiring as much necessary info about how to get the Apollo chip(and if worth of buying), ajnd any other additional hardware. What will I be needing in general to make an A1200 working.
An "Apollo" is an expansion card (an accellerator, i.e. a new, faster CPU), not a chip. It fits into the "trapdoor slot" at the bottom of your A1200. Another accellerator would be the "Blizzard" (which is generally considered to be the best A1200-accellerator).
For more information regarding A1200-accellerators visit the
Big Book of Amiga Hardware and check the "A1200 accellerators" section.
Accellerators usually include memory slots (so you can add more (and faster!) memory to your Amiga), most of them also have a HD-controller (which is (at least in case of the Blizzard) way better than the original HD controller on your A1200's motherboard).
Check EBay for used A1200 accellerator cards, dealers do not have them in stock anymore.
2. Can Linux (Suse 7.3) be utillised as an OS for such an Amiga. I have heard that Linux doesn't have any extravagant requirements.
Linux won't run on a stock A1200. If you add an accellerator, you will be able to run Linux-m68k - but only in "text mode", as the "graphics mode" will be way to slow on your A1200. Suse 7.3 is not available for 68k (AFAIK), only some more obscure distributions.
You can however add a "BlizzardPPC" accellerator to your A1200, which contains a PPC CPU (in addition to a standard, "Amiga compatible" CPU). But this option is *expensive*. You'll also need a graphics card (even more expensive), otherwise it won't be fun.
3. What about OS? Will I be able to run some programms/games from the good old Amiga days (workbench3.0 etc)
Programms: Yes, most of them. You can even add a harddisk to your A1200, which makes this a much more entertaining experience.
Games: Yes, but there will be compatability issues, as most games were written for an A500. You can get around this by using
WHDLoad (works only with
original games), searching for cracked versions that were made compatible with the A1200 ("AGA-Fix") or using various tools to "degrade" your A1200 (i.e. make it behave like an A500).
4. What about graphic expansion? Does a modified amiga 1200 accept any old PCMCIA graphic cards?
No. PCMCIA cards that will work in your A1200 are (apart from some Amiga specific cards): NIC + CompactFlash adaptors.
Adding a graphics card to your A1200 is possible, but expensive and you need to move your A1200 into a tower case. If you're still interested, I can give a more detailed answer.
5. Internet access: What are the limitations for such a machine? I 've heard that since PCMCIA card is what an Ethernet 10/100 is then it will be no problem to use it for internet access.
Internet access is no problem, but you will need more RAM and a faster CPU. I'd recommend
at least a Blizzard 1230. Without a graphics card, browsing the web is no fun, other things work fine though.