Since I need my passport to fly, and to book into hotels, in Thailand, etc, does that mean if I am applying for a visa for another country in Bangkok, where the embassy is, that I basiclally need to go live in BKK for the duration of my application process which can take up to a month?

I realise this isn't strictly about a visa for Thailand but more getting a visa in Thailand while staying here. Are there other groups better suited to this question?

EDIT: To clarify, I am currently living in Chiang Mai. I want to apply for a visa to the Netherlands, but the embassy is in BKK and takes up to a month.