It starts to work if the card is removed and then reinserted while the system is up.
I tested with a few different source versions and apparently the problem was introduced with gayle_pcmcia.c 1.30. Reverting to previous version makes it work again.
The A1200 had a known hardware bug, which caused certain cards not to work if inserted previous to boot.
AFAIK there was a hardware based fix, and also a software work-around. Maybe the previous pcmcia code implemented the software work-around and the new pcmcia code does not?.
Just thinking aloud...
FC
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During times of Universal Deceit, telling the truth becomes a revolutionary act Durante épocas de Engaño Universal, decir la verdad se convierte en un Acto Revolucionario - George Orwell