SDK issues

I would like to use the Hammer editor, mainly because I like being able to say “I made that” about decent things. Unfortunately, I’m having problems with the SDK itself, preventing me from even opening hammer.
When I initially open the SDK, it all seems normal, but at the bottom, my dropdown menus don;t show all of my Source games. With the Engine Version menu I have 2006, '07. and '09. Under '06, there is nothing, under '07, I can select HL2:E2, and under '09 I can select Portal or TF2. With any of these selected, if I try to start any of the applications, I get an error saying “The configuration information for the game you’re trying to edit is invalid or missing.” If I try to run Hammer anyways, I get a Hammer Error saying “Setup file ‘gameinfo.txt’ does not exist in subdirectory ‘…steam\steamapps arkisrai\half-life 2 episode two\ep2’. Check your -game parameter or VCONFIG setting.”

While looking around in hopes to find a solution, I found that the directory “…\steam\steamapps arkisrai\half-life 2 episode two\ep2” that was set up for Episode 2 doesn’t exist, there isn’t even a “…\steam\steamapps arkisrai\half-life 2 episode two.”

I have noticed that in “…\steam\steamapps” there are a lot of .gcf files pertaining to my games, but I don;t think it’s looking for those.

I have tried uninstalling / reinstalling the SDK and E2 in hopes of it working, but the issue is the same.

Do I have to play the game before it will work? If so, that would explain a whole lot.

Run each game at least once before starting Source SDK. The directories under your username are generated the first time you run a game.

As I said before. That makes sense. Thank you.