DFS Replicate Folder Wizard Fails: Security cannot be set on the replicated folder. The administrative shared folder does not exist.

Hi Folks,

Having the following error when trying to create my first replication group in our domain.

Update folder security. Error - FS-02 (Subjects): Security cannot be set on the replicated folder. The administrative shared folder does not exist.

We have two server 2012 R2 VM's.  One has been in production for a while, the other is brand new.  Each one has dfs replication installed.  The disks administrative shares are accessible from each server to the other via \\fs-02\f$ and \\fs-03\f$

Permissions appear to be identical on each share on each server.  

Any sugestions on where to focus my efforts?