SEPM Install database connection problems

So we're trying to install the SEPM on a Windows 08 R2 box and we're using the SQL database option.

The SQL database is running MS SQL 2012 SP1. The SEPM version we're trying to install is SEP 12.1.4a.

We are able to connect to the database during step one, we're able to create a new database, and make it to the end of the install.

We get to the "Preparing database" window at the very last step and it fails with a generic "Failed to connect to database". Firewall issues doesn't seem to be the issue, since connectivity has been verified by the DBA.

Can anybody advise?