I decided to update my JDK to Java 8, and installed to the default location of C:\\Program Files\\Java\\jdk1.8.0 with a jre subdirectory.
I
I'm in 1.0.2 and after I clicked OK, it immediately opened a dialog to allow me to specify the location for my project, no longer requiring navigation of the menus to edit the project JDK path.
Definitely strange that during install, it says the JAVA_HOME environment variable is set to a path that doesn't contain the JDK. After spending time fixing it (downloading the full 64 bit JDK), I create my first project and get the same thing. Because it's not using the environment variable that it hinges on during setup.
Odd behavior.