I thought only ATI cards (HD2000-HD3000 up) can have DXVA and HDCP. I don't know about your X1200.
EDIT: I see that the X1200 does support Blu-ray but i still don't know about HDCP. You could try to get a cheap card for 30.00+ HD 3450 and see if it works? But you'll still run it over VGA, which...