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I am trying to deploy my application to Google App Engine (GAE) through intellij 11 ultimate.
I have downloaded the GAE sdk and followed the instructions (here) on how to setup intellij properly.
The problem is when I try to add the local GAE to test my application I am getting
Error: Application Server ‘AppEngine Dev’ is not configured
Intellij 11, GAE java-sdk-1.7.4
Error message and I am not sure what I am missing. 
Thank you
Seem like a bug. Only after deleting GAE facet I was able to click on the configure button in the Run/Debug Configuration. Once this was done I was able to add the facet and again.