To answer your question in short, yes.
However, keep in mind that packaging always requires a clean computer! You don't want all sorts of things to interfere with your. I would also recommend using a virtual computer instead of a physical one (if you are not already doing this). Virtual computers make your life so much easier.
I dont know if Virtual computers in general do make our lives so much easier... But in this case snapshots of your virtual machines are indeed a huge must-have.
I do have VMWare Workstation available and can use a virtual machine to handle this. I guess I was expecting it to work in a different manner due to past experiences. It seemed odd that you would need to load the software within your clean environment, especially considering it is designed to handle other things as well (like the Tuner).
Thanks for the help!
In case others search for this same topic, I am posting more details on what I have found:
After installing the entire Admin Studio on the clean machine, and beginning the Repackage Wizard, it mentioned running the Repackage Wizard remotely and referred me to the help document for Admin Studio. As it turns out, you do not need to install the entire admin studio software to your clean machine because they have a remote packager you can install instead. Granted, either way you need to install software, but the remote packager is much smaller and this is their recommended method of doing the capture. For anyone looking for information on this, search for 'Repackaging Wizard Best Practices' in the Admin Studio help document for details on how to configure it. Dont worry, its quite easy to setup!
Since I had already installed the entire Admin Studio product, I was very thankful that I had taken a snapshot of the VM
Hope this helps someone else out there!