A lot of people seem to be joining LnE at the moment!
I did it last year, mostly successfully. As you've noticed, it can become quite expensive.
I assume your looking at the full plan (3 meals and snacks, 7 days a week)?
My reccomendation would be to do the 1200 cal one, but perhaps 'add in' a little extra - ie, allow one extra serve of fruit. When I went on the 1200 cal one I allowed butter on the vegetables (just kept me a little more sated after dinner - i was ravenous, especially when i started!). I think this would be ok as long as you pre-defined what you were adding.
Other options could be to just do a 5 day plan, or not include breakfast etc. The reasons i wouldn't push these as much, is that in my experience i found i just didnt stick to the plan AT ALL. The end of the week would see me with heaps of LnE food left too because i just wouldnt it eat it all (i'd be too busy eating the 'other' foods!) But this really depends on the person, and this set up might suit you a lot better then is did me, so have a think about it too
Let me know what you end up going with
And good luck! Hopefully you also have some success with this.