This took a few settings to get it working.

For one I put the correct paths in for karma and webdriver

I then had to download mocks http://code.angularjs.org/1.2.14/angular-mocks.js even though I used angular-seed and setup my module to include this 'ngMockE2E'

This page was a good starting point http://docs.angularjs.org/api/ngMockE2E/service/$httpBackend

Then there is the testing end 2 end frame work https://github.com/angular/protractor/tree/master/docs/ that allowed me to easily write non-unit tests