Build Workflow on Window 2008 using Visual Studio 2008

I try to build a workflow by selecting the SharePoint 2007 Sequence Workflow but it come up with a error " A 32-bit version of SharePoint Server is not installed. Please install a 32 bit version of SharePoint server".

Does it mean I need to install the Studio on the Window 2008 server ? Can the Studio works fine on a 64-bit environment ?

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