To use the local dedicated %InstanceName; instance with DPM, uninstall SQL Server and run the program again. 2)To use the ...

1)To use the local dedicated %InstanceName; 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.