I ran into a strange error message when installing DPM 2012 connecting to a remote SQL server.  The remote SQL server is Microsoft SQL 2008 SP2 with a DPM instance.  The error was produced during the prerequisites check.  The text of the error is:

The installation of Reporting Services is not correctly configured or no instance of Reporting Services is linked to <Name of your SQL instance> of SQL Server. 1)To use the local dedicated <Name of your SQL instance> instance with DPM, uninstall SQL Server and run the program again. 
2)To use the option of installing DPM with an existing instance of SQL Server, make sure that the Reporting Services instance is also installed and linked correctly.  For details, refer to DPM Setup Help.

Well it turns out the entire problem was what I was typing in the instance of SQL server box.  If I don’t type the FQN it works(sql01.lab.local vs. sql01).