Hi,
I started doing 1/1200 models because I got a batch of the inexpensive Revell kits like this Duke of York I did:

The Revell selection is really shallow and doesn't include any smaller ships. I got the Airfix Bismarck set, which seems to be pretty much a one-off... haven't done anything with it yet, but it does contain some useful ships.
Then I bought a batch of ships off eBay. They were used and rather badly painted, I think they are all from MY Models. I stripped and repainted them:

I actually quite liked painting these (usually I do 1/3000 for ships) and I thought this would be a good scale to do destroyer and maybe cruiser actions. I thought I'd do the battle of Narvik, but unfortunately the MY range is far from complete and e.g. seems to completely miss the earlier (pre-Tribal) British destroyer classes.
Anyone know any other 1/1200 scale ranges?