Domain functional level problem

I have a SBS2003 server as the only DC.  I want to add a 2012 server and eventually transfer DC and FSMO to the new server.  Server 2012 says it cannot dcpromo because it fails verification of replica, and tells me I have to raise Domain Functional Level (DFL) to 2003.  

On the sbs server, the gui shows the DFL is 2003.  DSQUERY returns 2,0 which is supposed to be 2003,nonmixed.

But the new server still will not dcpromo.

Anybody dealt with this?
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ktaczalaConnect With a Mentor Commented:
did you update both ad users & computers and ad domains & trusts?
Here is a step by step on how to get there, I think there are a few changes that you may need to be aware of with regard to use of dcpromo.

Also please verify the time on your new DC (2012).
billherdeAuthor Commented:
The link info is good, but revealed nothing new to me.  All the steps proceed per the plan right up to the deployment configuration step where the 2012 server says the DFL is still 2000.
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So are you getting this error as a part of the “Promote this server to a domain controller” wizard ?

I saw you mention dcpromo above, which if you follow the link I sent you, it uses the 2012 wizard to complete the process of making the 2012 server a DC.
billherdeAuthor Commented:
It is the wizard that is presenting the error.

For some reason it still thinks the domain is 2000. But the SBS server (the only other server) shows 2003.  The link was good to double check everything, but it all checks out.

Driving me crazy!
Can you take a screenshot of the failure / error.
billherdeAuthor Commented:
Unable to paste screenshots ere, but the test of the error from the configuration wizard reads

Verification of Replica failed. The forest functional level is windows 2000. To install a windows server 2012 domain or domain controller the forest functional level must be windows server 2003 or higher.

When this goes, the event log gives me this.

The DFS Replication service detected an incompatible Active Directory Domain Services schema version while trying to read configuration objects from server SBS2003

ktaczala - I am only aware of one place to raise the DFC. That is in Users and Computers.  Where is there another button in AD Sites?
becraigConnect With a Mentor Commented:
Ahh you need to raise the forest functional level:
To raise the functional level of the forest

    On the Source Server, click Start, point to Administrative Tools, and then click Active Directory Domains and Trust.

    In the console pane, right-click Active Directory Domains and Trusts, and then click Raise Forest Functional Level.

Detailed step by step:
billherdeAuthor Commented:
That was it!
Thank You Gentlmen.
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