Brian,
Everything worked fine with SEPM 12.1 on the server and installing protection client to computers with other servers and Win 7 computers, so unless upgrading SEPM from 12.1 to 12.1.2 somehow changes that, I don't think so.
I figured it was something on the laptop,but when I look up that error, I don't think any of the issue apply, I have UAC turned off on the laptop, and File and Printer Sharing on, as the solutions describe. I looked at the event viewer of the laptop to see if it was blocking it somehow, but it doesn't have any events for SEP or SEPM listed. My server and Win 8 laptop are on the same subnet if that matters.
I assume there are logs on SEPM I could look that might give me a clue, but I don't see anything in them.
Thanks!