No, you don't need to configure the Safari Installation Path. BrowserSim should detect it automatically unless you have some old version of QuickTime, iTunes or Safari.
Please try to go to "Control Panel\Programs\Programs and Features" and remove all Apple software (type "apple" in the filter field at the top right corner).
Then try to reinstall the latest Safari: http://support.apple.com/kb/dl1531
If this does not help, please run JBDS with Java console (you need to change "javaw.exe" to "java.exe" in the jbdevstudio.ini) and copy printed error messages here.