Hey, I'm new to the game designing/making scene and I've just picked up the Love 2D engine and have my whole game idea kind of mapped out. It's a sort of horror/platforming game with some shooting elements.
What I'm at a loss for is where to begin. Namely I don't know much about how to do anything with Lua other than I'm going to need to write an intepreter in C basic I think.
Whatever book told you that, throw it away. The Lua distribution comes with the interpreter, as well as the library code needed to embed the interpreter in your application if so desired. Just head to Lua's webpage, download an installation, fire up lua.exe and go to town. And if you want to eke out that last little bit of performance (note: you probably won't need to), there is always LuaJIT, a drop-in replacement .DLL that implements the Lua virtual machine as a just-in-time compiler.
So, no, you don't need to write an interpreter. All the hard work is done for you in that regard.