Trouble installing CKFinder with CKEditor on Drupal

Everything appears to be set correctly on my Drupal based site. But when I try to upload an image I get the following error message in a pop-up window:

The file browser is disabled for security reasons. Please contact
your system administrator and check the CKFinder configuration file.

Then Drupal gives me a message that there is a problem with the configuration of one of my modules. I click through and there is a message under CKEditor 3.3.1 that says:

You are using a feature that requires $cookie_domain to be set, but it
is not in your settings.php (CKFinder is enabled in the Advanced profile).

That would be the step where I edit the settings.php file in the sites/default folder, correct? I put my site's URL there (and confirmed that it's there).

Any suggestions?

Thanks,

James