It literally took me 2 days not 8 hour days 14 hour days to make everything work right.
I started with Windows Home Premium(which I shouldn't have) and SQL Server 2012 with SP1(note that VS Studio Express was there on the pc).I didn't go any where as I need Windows 7 sp1 and I couldn't install it on my pc successfully(TRUST_E_NOSIGNATURE(0X800B0100), searched through web and found out that re-install was my only option).
I have decided to re-install win 7 home premium and got the sp1 going on, then I started with SQL Server 2012 with SP1 Dev Edition.After about 20% in the installation process I got an error about Visual Studio 2010 shell(along these lines This installation package could not be opened).I continued with the error and installation completed with errors syaing that Sql Server Data Tools installation is failed. Then installed Visual Studio 2012 Premium, everything seems to went fine.
I was able to start the SQL Server instance and connect to it, but when I opened the adventure works database warehouse project, VS says that it is not a valid project.Tried to get myself a copy of SQL Server Data Tools on the web with no luck.I thought that problem is with OS so I figured out this I will go Pro or higher version of OS to solve the problem.
Installed Windows 8 Enterprise and repeated the order of installation same as windows 7 mentioned above and ended up with same errors(tired by now, to download and install OS'es,hundreds of updates...etc).Same error with Visual Studio Shell.
I didnt want to give up, so wiped the entire hard drive(3rd time) and started with Windows 7 Enterprise and followed the order below and I am all up and running(aaah!...).
Windows 7 Enterprise(& 143 Updates)
Visual Studio 2010 Premium
Visual Studio 2012 Premium
Visual Studio SP1
Windows 7 SP1(SQL Sever 2012 SP1 & SSDT Needs Win 7 Sp1)
Sql Server Data Tools 2010 & 2012
SQL Server 2012 with SP1
Good Luck Folks!, what a pain.