Yes, you need to file the I-130, get it approved and notify NVC that you will be filing an I-601A Provisional Waiver and NOT the I-601. This is required because she entered illegally. I strongly suggest that you hire an experienced Immigration Attorney to help you with your Waiver. Waivers are complicated as they require preparing a brief with supporting documentation to show that you would suffer Extreme Hardship (Financially and Emotionally) if your wife has to wait 10 years.
The fees that the lawyer is charging are very reasonable, especially for a Waiver.
However, I strongly suggest you consult with an Immigration Attorney as there may be a way to avoid having to proceed with the Waiver route, since she entered when she was 11.