Configuration Error - Does Titanium Desktop SDK need to be installed separately.

I am trying to set up Titanium studio and running into multiple problems; let's solve one at a time. I'm running Windows 7 64-bit. I followed the installation instructions for Titanium studio, Python, and the Android SDK.
In the Preferences window of Titanium Studio, on the Titanium Studio->Titanium page, I see: " Problems detected with the SDK Settings" Clicking on that, I'm told that "C:\Users\<user name>\AppData\Roaming\Titanium\sdk\Win32 is not a directory".
I browsed to "C:\Users\<user name>\AppData\Roaming\Titanium\", and see that, indeed, there is no folder named "sdk" at that place. There are two folders named "mobilesdk" and "modules", but no "sdk" folder.
Does this mean that the Titanium SDK has to be downloaded and installed/unzipped to that location? If so, what version should I download? And why didn't it install with Titanium studio--was it inadvertently omitted??