You can run dedicated managers at each loaction, but you cannot manage all SEP 12 Managers from a central location.

OK cool. Now if I already have SEP installed on clients at Site1, for example, and they talk back to Admin1 location, can I now install another copy of the manager at Site1, and redirect those clients to that server?

See Chapter 17 "Managing disaster recovery", of the Implementation Guide  for instructions.

ftp://ftp.entsupport.symantec.com/pub/support/docu...

Note: The Symantec Protection Center system must have the same IP
address as the original Symantec Protection Center system. 

Maybe I didn't explain fully. I don't want to move the server. All my systems are on a WAN and my 7 locations are each on a different subnet and domain. Right now they all are managed by the Admin1 location. I want to have a SEP server at each location to handle definition updates. If I make a new install at each location, will I have to have multiple licenses or can I do this at all? My reasoning for this is to reduce network traffic to Admin1.

For each SEP 12 server you will need a license. The Admin1 will not see these  7 locations in the console. You should look into SEP 11 for your needs. SEP 12 was really designed for a small business with one location to manage.

I see. I will look into that. Hopefully I can get the licenses I purchased changed over to v11. Thank you.