Well I got the BASIC cartridge to work... I guess I just didnt have it all the way in... Oops!
Got the READY prompt and tried to start typing... It appears that only the Q, I, O, P, K, V, N, Space, Delete, TAB, and all Numeric Keys work. All the others dead.
Are there any known Issues with the 1200XL keyboard that could cause this type of behavior?