Active directory migration sbs2003 to server 2012 R2 Standard

I'm trying to migrate the active directory from a sbs 2003 to a 2012 R2 Standard. I have transfered all the FSMO roles, but when I shut down the sbs 2003 the 2012 server acts like it does not contain the active directory. When I go to the "Active Directory Users and Computers" I can right click on Active Directory Users and Computers and change the domain controller to my 2012 box and it displays all the same containers i would see on the sbs 2003 box (only when the sbs 2003 is on though). There are only 15 users on the sbs 2003 box so the replication should have been almost instant. So why when I turn off the 2003 box does the 2012 act like it does have the active directory.

BY the way i'm testing this all out on a hyper-v box with images of the 2 servers before i actually attempt the real thing so i am NOT worried about losing data.

1 thing to note. I have always in the past had to insert the latest OS server CD to the older server and do adprep, but I was unable to do so on the sbs 2003 with the 2012 r2 cd I get the following error "The image file D:\support\adprep\adprep.exe is valid, but is for a machine type other than the current machine." I assume because that is meant for a 64bit machine when my sbs box is a 32bit machine. Someone told me to just join the 2012 server to the domain and when you promote it will do all the adprep work for you?

These are the steps I have taken.
1.      Raise domain functional level + forest by going to 2003 on sbs2003 in the “Active Directory Domains and Trust”
2.      Attach server 2012 to the sbs server
3.      Add roles and features “Active Directory Directory Services”
4.      Server 2012 server manager “!”Promote this server to a domain controller
5.      .. > Skip DNS > Drop down select sbs2003 server > … Install (2012 Server will RESTART)
6.      Transfer FSMO roles. SBS2003 primary dns points to itself and 2012server points to SBS
a.      Open Active directory users and computers > right click on domain.local and click change domain controller.
b.      Right click on domain.local and click operations masters…
c.      Change RID, PDC, and infrastructure and click change.
7.      Open Active Directory Domains and Trust > right click on Active Directory Domains and Trust and click domain controller and select 2012.
a.      Right click domain.local and click operations master and click change.
8.      Open a command prompt in administration view on your new Windows Server 2012 R2 computer enter regsvr32 schmmgmt.dll and hit enter.
9.       Run mmc, add Active Directory Schema, right click on active directory schema and change the domain controller to the 2012server.
a.      Right click Active Directory Schema > operations master > click change.
b.      If it does not work at first wait 3minutes and try again.

Change DNS on 2012 to point to itself
Install DHCP
fsmo-roles-location.jpg