Yes, setup is in the scrabble dictionary

...and is worth 9 points by itself.

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Setup Definition

noun

A camera position, as for a particular shot in a scene being filmed.
from The American Heritage Dictionary of the English Language, 4th Edition
A plan or strategy for a projected course of action.
from The American Heritage Dictionary of the English Language, 4th Edition
A table setting, as in a restaurant.
from The American Heritage Dictionary of the English Language, 4th Edition
Body posture or carriage, especially militarily erect bearing.
from The American Heritage Dictionary of the English Language, 4th Edition
Informal The collective ingredients, such as ice, mixers, and glasses, necessary for serving various alcoholic drinks. Often used in the plural.
from The American Heritage Dictionary of the English Language, 4th Edition

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Top Words by points

Points

stupe

7

2 letter words with SETUP

Points

et

2

pe

4

te

2

up

4

us

2

ut

2

es

2

3 letter words with SETUP

Points

tup

5

tes

3

ups

5

use

3

sup

5

sue

3

set

3

ute

3

uts

3

put

5

pus

5

pst

5

pet

5

pes

5

est

3

4 letter words with SETUP

Points

utes

4

tups

6

step

6

supe

6

suet

4

spue

6

sept

6

puts

6

pets

6

pest

6

5 letter words with SETUP

Points

stupe

7

setup

7

upset

7

Found 35 words in 0.15819 seconds