windows 2012 server joining a 2003 sbs domain

current server: running windows Small Business Server 2003  "2003"

new server: windows 2012 standard "2012"

Challange; trying to join the 2012 to the 2003 domain and make it BDC.

Error; "the forest function level is windows 2000. to install a windows server 2012  domain controller the forest functional level must be windows server 2003 or higher"

What I already did:

Clicked Active Directory Domains and Trusts , and then clicked Raise Forest Functional Level .
Now it shows "current domain functional level windows server 2003" this domain is operating at the highest functional level".

Why does 2012 still think that 2003 is running in 2000 mode?
Any help would be appreciated.

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sleviAuthor Commented:
Thanks for the link, it didnt have the answer to my question it just gave me step by step.

I did figure out the problem though;

I kept right-clicking on the domain under the Active Directory Domains and Trusts, instead of the parent, so I wasn't seeing the "raise forest" option, only the "raise domain"
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Windows Server 2012

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