No, that's not necessary. Your home folder is screwed up. It's a common scenario in Lion, for reasons that I haven't been able to determine. Until recently, Apple made it ridiculously hard to recover from this condition. Things have improved, but it's still not a one-click operation as it should be.
This is a two-part procedure. First you'll unlock all locked files in your home folder, then you'll reset permissions and ACL's.
Part A
Back up all data.
Enter the following shell command in the same way as above:
sudo chflags -R nouchg,nouappnd ~
You'll be prompted for your login password, which won't be displayed when you type it. You may get a one-time warning not to screw up. You don't need to post the warning. If you don’t have a login password, you’ll need to set one before you can run the command.
The command may take a noticeable amount of time to run. Wait for a new line ending in a dollar sign (“$”) to appear, then quit Terminal.
The procedure below will reset the permissions of a home folder in OS X 10.7.4 or later. If you're running an earlier version of 10.7, update to the current version first. This procedure should not be used in OS X versions older than 10.7.4.
Part B
Back up all data again.
Step 1
Click the Finder icon in the Dock. A Finder window will open.
Step 2
Press the following key combinations, in the order given:
Command-3
Shift-command-H
Command-I
The Info window of your home folder will open.
Step 3
Click the lock icon in the lower right corner and authenticate with the name and login password of an administrator on the system. If you have only one user account, you are the administrator.
Step 4
In the Sharing & Permissions section of the window, verify that you have "Read & Write" privileges. If not, use the "+" and "-" buttons in the lower left corner to make the necessary changes.
Step 5
By default, the groups "staff" and "everyone" have "Read Only" privileges. With those settings, the files at the top level of your home folder will be readable by other local users. You can change the privileges to "No Access" if you wish, but then your Public and Drop Box folders will be inaccessible to others, and Personal Web Sharing won't work. Most likely, you don't need to change these settings.
Step 6
If there are entries in the Sharing & Permissions list for users or groups besides "me," "staff," and "everyone," delete them.
Step 7
Click the gear icon at the bottom of the Info window and select Apply to enclosed items... from the drop-down menu. Confirm. The operation may take several minutes to complete. When it does, close the Info window.