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cannot play, unable to find RCT2 installation directory

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I purchased and downloaded RCT2 through Steam. I downloaded & installed the Open RCT launcher. When I open it it says "Unable to find RCT2 installation directory. Please select the directory where you installed RC2"

But Steam doesn't download the game directly onto your computer, rather you play online on the Steam site, no? I did a search for RCT2 on my computer & didn't find anything. Do I have to have a disk of the RCT2 game to be able to play? On the Open RCT2 home page, it suggests downloading the game from Steam, so I am at a loss.

Please help.


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