I am using Idea 13.1.4 (Windows)
When I load a basic SBT project I get:
Error:Cannot determine Java VM executable in selected JDK
However JDK 1.7 is on my system and on the Path too.
At a loss as to why this is happening..
I just had the same problem on a fresh install of intellij 13 on MacOs.
I managed to make it working by setting the jdk from the settings instead of the open project dialog.
On the welcome screen, I went to Configure -> Project defaults -> Project structure and added the jdk there.
Then, opening the sbt project went well.
There might be a problem with the setup of a new jdk from the project dialog,
Hope this help,