No, you don't need to do all that.
http://wiki.cyanogenmod.com/index.php?title=Install_the_Latest_Android_sdk
ALL the way at the bottom is the Windows setup. Make certain there are NO spaces in the path name to the SDK. I'd suggest leaving it right on the root of C:\
http://wiki.cyanogenmod.com/index.php?title=Install_the_Latest_Android_sdk
ALL the way at the bottom is the Windows setup. Make certain there are NO spaces in the path name to the SDK. I'd suggest leaving it right on the root of C:\