Bob,
Just wanted to get back to you on this. I've seen the exact same thing you've described and I've alerted R&D to the situation. We're looking into it. They did mention that the 1.2.1 basically added to the License Manager to allow for license activation in some situations where people had been previously having problems. Did you have 1.2 activated in the license manager? If so, you should be fine. It sounds like your 1.2.1 is installed correctly. I'll let you know as soon as I've got some further information for you.
Have a good one,
Jim Laudie
Applications Engineer, National Instruments