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Cisco Aironet 1231G not allowing confiure menu/ Cisco LWAPP Controller

We purchased a new Cisco Aironet 1231G.  I have worked with the 1200 series before but never this model.  When I log into the console, I can get to enable mode but the unit does not take a "conf t" command.  It does get an address and when I try to web into the address, I get no response.  Pings to it resolve, albeit DHCP and not statig (no configure menus).  I notice when consoled the message:  
LWAPP_CLIENT_ERROR: lwapp_name_lookup - Could Not resolve
CISCO-LWAPP-CONTROLLER.mydomain.com                                      
Translating "CISCO-LWAPP-CONTROLLER.mydomain.com"

Do these new models require some type of controller (like the SonicWALL SonicPoints) or am I missing something obvious?  I have scoured Cisco site and by my interpretation of the readings, there should be some type of wireless controller device.  If that is the case, and I don't want to use an 1100 series AP, is there an alternative?

201407-LO-Qu-006

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