Catch-22 in the Scala Facet configuration

Hi!
I am having some problem compiling my Scala project in IDEA 12.1.2.

The difficulty is in configuring the Scala Facet in Project Settings.
In ProjectSettings -> Libraries, I attached scala-library.jar and scala-compiler.jar

Then, in ProjectSettings -> Facets, I choosen "Use ordinary compiler".
It asks for Compiler Library. The dropdown menu gives 2 alternatives:
1) scala-compiler
2) scala-library
If I choose scala-compiler, then I am getting error no scala-library*.jar found
If I choose scala-library then the error is no scala-compiler*.jar found

I am sure I am doing something very wrong.
Please help!
Andrei