diff --git a/readme.markdown b/readme.markdown
--- a/readme.markdown
+++ b/readme.markdown
@@ -9,20 +9,40 @@ Site: http://neboard.me/
 
 # INSTALLATION #
 
-1. Install all dependencies over pip or system-wide
+1. Download application and move inside it:
+
+`hg clone https://bitbucket.org/neko259/neboard`
+
+`cd neboard`
 
-You can use virtualenv to speed up the process.
+If you wish to use *decentral* version, change branch to *decentral*:
+
+`hg up decentral`
 
-Use pip3 install -r requirements.txt
+2. Install all application dependencies:
+
+Some minimal system-wide depenencies:
 
-Dependencies for the database and search engine need to be installed manually
-when you choose which one to use.
+* python3
+* pip/pip3
+* jpeg
+
+Python dependencies:
+
+`pip3 install -r requirements.txt`
+
+You can use virtualenv to speed up the process or avoid conflicts.
 
-2. Setup a database in `neboard/settings.py`
-3. Setup SECRET_KEY to a secret value in `neboard/settings.py`
-4. Run `./manage.py migrate` to apply all migrations
-5. Apply config changes to `boards/config/config.ini`. You can see the default settings in `boards/config/default_config.ini`
-6. If you want to use decetral engine, run `./manage.py generate_keypair` to generate keys
+3. Setup a database in `neboard/settings.py`. You can also change other settings like search engine.
+
+Depending on configured database and search engine, you need to install corresponding dependencies manually.
+
+Default database is *sqlite*, default search engine is *whoosh*.
+
+4. Setup SECRET_KEY to a secret value in `neboard/settings.py
+5. Run `./manage.py migrate` to apply all migrations
+6. Apply config changes to `boards/config/config.ini`. You can see the default settings in `boards/config/default_config.ini`
+7. If you want to use decetral engine, run `./manage.py generate_keypair` to generate keys
 
 # RUNNING #
 
@@ -47,4 +67,4 @@ You can also just clone the mercurial pr
 
 # CONCLUSION #
 
-Enjoy our software and thank you!
+Enjoy our software and thank you!
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