Updated:

With update 2 the deployer account no longer as to be an admin on the machine.  The account simply needs to correct permissions to deploy the desired components.  

Problem:

When I attempt to register my deployer I get a 401 unauthorized error.

Solution:

Make sure the account you are using is an Administrator on the deployer machine and added to Release Management on the Server.

Also the account running the installer must have access to the Sql Server on the Release Server machine.