SQL Server 2012 new availibilty group wizard error

hi!

I am trying to configure "AlwaysOn Availability Group"

I have 2 SQL servers, and i created 2 different names instances on them and also enabled always on availability on both servers.

Now i am trying to add new Availability group,

In that wizard, at "Specify Replicas" i added primary replica is SQL01\SPSQL01

and 2ndry replica i added is SQL02\SPSQL02.

At the time of "validation" step its fails with 1 error,

Checking for compatibility of the database file location on the secondary replica resulted in an error. (Microsoft.SqlServer.Management.HadrTasks)

------------------------------
Program Location:

   at Microsoft.SqlServer.Management.Hadr.TestDatabaseFileLocationCompatibility.DoWork()
   at Microsoft.SqlServer.Management.TaskForms.SimpleWorkItem.Run()

===================================

The following folder locations do not exist on the server instance that hosts secondary replica SQL02\SPSQL02:
D:\Microsoft SQL Server\MSSQL11.SPSQL01\MSSQL\DATA;
 (Microsoft.SqlServer.Management.HadrTasks)

------------------------------
Program Location:

   at Microsoft.SqlServer.Management.Hadr.TestDatabaseFileLocationCompatibility.DoWork()

Rest of the tests are passed, but its just above 1 test which is failed with above error description. What i have understood is its trying to search for SPSQL01 instance DATA folder on SQL02 server, which i checked doesn't exist. I am confused, should it exist? if yes then how it will be there coz SQL02 only host SPSQL02 instance

SaM