n00b trying to set up IDEA 12 for Android development, but I'm running into issues. Help?

When I open up IDEA and "Create New Project", I select Android Application Module, then specify the location of the Android SDK, but then it gives me an error saying that I have not defined a Java SDK.  I have Java installed, so I'm not quite sure what to do.  Any assistance would be great.  Here are some screens.  Windows 8, if that makes any difference.
http://i.imgur.com/6ywMn.png

http://i.imgur.com/3C8Jb.png

http://i.imgur.com/QRL55.png