I opened a ticket with HTC on this and it appears that is atleast a problem with the Gallery APP not supporting wifi direct. That may not be the whole problem but it is part of the problem.
Originally Posted by marctronixx
When using wifi direct, one of the devices needs to be seen as a server to the other or host device. if they are both trying to be servers then they are not talking to each other to make that determination.
a brief google search on the tf700 presents people saying the wifi direct mode is crippled and/or is not working properly.
Not seeing where you declare one as a server in the settings. I have made the two devices connect according to the wifi menu. They first they say 'invited' then they say 'connected'.
I will look up the issue about tf700 not working on google.