We have a client with a SBS 2003 domain/server that we are looking to migrate to Windows 2012 Std. I went ahead and raised the FFL to Server 2003, ran a repadmin /syncall, and checked the FFL on the SBS Server and the secondary Server 2003 DC offsite and they both show FFL as 2003. So this morning I go to promote one of the new Server 2012 machines to a domain controller and I get this error when I click NEXT after selecting "Add a domain controller to an existing domain". "Verification of Replica failed. The Forest Functional Level is Windows 2000. To install a Windows Server 2012 R2 domain or domain controller, the forest functional level must be Windows Server 2003 or newer."
I'm at a loss as Active Directory show the FFL as Windows Server 2003.