Using a matrix approach based on a Markov process, we investigate the reliability of a circular connected-(1,2)-or-(2,1)-out-of-(m,n):F lattice system for the i.i.d. case. We develop a modified linear lattice system that is equivalent to this circular system, and propose a methodology that allows the systematic calculation of the reliability. It is based on ideas presented by Fu and Hu [6]. A partial transition probability matrix is used to reduce the computational complexity of the calculations, and closed formulas are derived for special cases.