I am upgrading clients from 12.1.1 to 12.1.4 I am doing it by creating a sub folder where the clients are located and adding install package. This way I can move few at at time to make sure all is good. My question is since 12.1.1 is installed and I will be moving clients back to the original location after the upgrade what upgrade setting would be best?

Also since the location of the install may vary I set it to "install to the default installation folder" would this be the best setting?

defalut location would be 

c:\program files\symantec\symantec endpoint point

if you want to install on diffrent drive you can specify here, for ex if you are running of of space on C drive and want to install on D ,

you will specify as

D:\Anyfolder\Install

Most of the times it will be on C drive only, 

the best you can do is to run a computer status report

monitors - logs - computer status report

put in excel..

Sort by disk size. if there are clients who are running out of space, install 12.1.4 on D :) 

To configure clients to move automatically when they upgrade:
 

1. In the new manager, go to Admin > Install Packages > Client Install Settings.
2. Either create new Client Installation Settings or edit an existing set.
3. In the settings dialog, click Install > Upgrade settings, and select Remove all previous logs and policies, and reset the client-server communications settings.
4. Use these Install Settings when pushing client packages.

Additionally, if the new SEP 12.1 SEPM is not or has not been a part of the previous environment, the following steps may be necessary as well (please note: one of the below options may be required, but not more than one):

How to change the installation folder for a Symantec Endpoint Protection (SEP) client

Upgrade clients to SEP 12.1 by Auto upgrade feature

https://www-secure.symantec.com/connect/articles/upgrade-clients-sep-121-auto-upgrade-feature

You can create the package with mention different location

http://www.symantec.com/docs/HOWTO50288

Do you need more help here ?