Cannot create a Android project.

So I recently transferred from eclipse to Intellij and I can't seem to create a android project. I go through the steps of starting from scratch, choosing android project, specify a directory for source file, and then I get to the JDK selection screen. I created one for regular Java development and it works fine, but when I select it for a android project it says "You need to create at least one JSDK of versions 1.5 or 1.6". Then I tried creating a new one where my Android SDK is found and it says when I click ok "The selected directory is not a valid home for JSDK. Am I missing a crucial step?