Error configuring SQL Server as Distributor

I'm trying to configure replication on a new install (moving to SQL 2012) and I keep getting the same error even after messing with the service name, folder permissions, etc...

Using the Configure Distribution Wizard, I'm getting the following error:

SQL Server could not configure 'SQL01' as a Distributor Additional information: An exception occured while executing a Transact-SQL statement or batch. (Microsoft.SqlServer.Connectioninfo)

Destination path E:\MSSQL\Data is not valid. Unable to list directory contents. Specify a valid destination path. Changed database context to 'master'. (Microsoft SQL Server, Error: 14430)

I logged in as the local Administrator. I connected to SQL using the local Administrator account. I tried running SQL Server/Agent as NETWORK SERVICE as well as making a local user and using the local user. The local user has full permissions to E:\MSSQL\Data folder which is where all the databases are kept.

Windows Server 2008 R2 SQL Server 2012 SP2

Thank you, Adrian