Currently its running under LocalSystem. But I have made a local account for it and entered during setup. The service account stuck but the agent account crapped out. Process monitor did give me some access denied entries when I try to start it but I was under the impression the sql configuration manager would take care of it. Unless this is something new in SQL Server 2012 does the agent account need to belong to the admin group?

Regarding the domain account. I don't have one this is a client system we are assisting with. I may end up leaving it as LocalSystem if its too much of a hassle. For what its worth this is also on Server 2012 and I already disabled user account control. The installation was performed with an admin added to the administrator group. Not the main local Admin.