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Migrating from Server 2003 SBS to Server 2012 Standard

I am trying to finish a migration from 2003 SBS to 2012 standard. I have added the 2012 server to the domain, and promoted it as a domain controller. We have all the data moved and it seems as those AD has replicated as all that data is viewable on the 2012 server now.  Now I am trying to change the FSMO roles and I get an error:  The current Domain Controller is the operations master. To Transfer the operations master role to another computer, you must first connect to it.
I am trying to do this FROM the 2012 server, I go into the operations master and click the Change button under the RID and that is the error I get.  It is showing the OLD server as the current operations master.  I have read a few other posts about upgrading the schema etc... but when I check the schema level on the 2003 server it is saying the object version is 56, which refers to a 2012 server.
What am I missing here???
Thanks
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Cliff Galiher
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This is usually a DNS issue. Make sure you have DNS properly configured on the NIC and that it is *only* pointing to your DCs. Also, look for replication errors in your event logs. Even if objects are viewable in 2012, that doesn't mean replication has completed and that the machine is advertising itself as an eligible DC. Event logs will almost always indicate the replication status (successes and failures.)
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I found that there was an additional DNS in there pointing to 8.8.8.8. I have removed that and I still get the same error.  I looked through the event logs and found a DFS error, and that seems to be resovled after removing the DNS address. not seeing any other errors related to replication status.  
I am still getting the same error. Any other thoughts.  Thanks
are you able to view event id 1394 in directory service event logs on 2012 DC, also check 13516 in File replication logs

Also check if you are able to view netlogon and Sysvol shares on 2012 DC by running net share command

Also run netdom query fsmo on 2012 DC and check where existing FSMO roles are residing ?
Reboot both servers, then practice patience. A DNS issue can definitely break replication, and AD does replicate with DFS, so DFS errors *are* replication errors. It can take a bit for both servers to agree they are staying in sync and for the new server to properly advertise.
I don't think AD is replicating with DFS at this point of time

1st there is SBS 2003 server which prevent AD from replicating Sysvol with DFS

Sysvol must be replicating with FRS

However DFS services are running on DC
First you need to verify the health of dc, run dcdiag/q and repadmin /replsum on both DCs and post the result if error is reported.

Set DNS on DC as below.
Best practices for DNS client settings on DC and domain members.
http://abhijitw.wordpress.com/2012/03/03/best-practices-for-dns-client-settings-on-domain-controller/

You can also try powershell command on Win2012 DC to move FSMO role. Open powershell(run as administrator) and execute below command.

Move-ADDirectoryServerOperationMasterRole -Identity "DC01" -OperationMasterRole 0,1,2,3,4

Reference link: http://www.archy.net/windows-server-2012-migrating-fsmo-roles/

Ensure that you are using enterprise, schema and domain admin rights user id.
I ran the dcdiag/q and the only fail I get is
IsmServ Service is stopped on [Server] ...................................Failed test services

No Errors on the repadmin /replsum on either server

The netdom query fsmo shows the old server holding all the roles still.

I have only tried to move the roles via the normal way going through administrative tools and click on master roles and clicking change. I have not tried the powershell or forcing yet as I don't want it to break anything else.

Any ideas if I need to run the schema upgrade on the old server first? or can I just seize the roles?  
Thanks
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