diff --git a/README.txt b/README.txt
--- a/README.txt
+++ b/README.txt
@@ -19,6 +19,17 @@ our company regular hgwebdir.
 
 
 == INSTALATION
-run dbmanage.py from pylons_app/lib it should create all needed table and
-an admin account, Edit file repositories.config and change the path for you 
-mercurial repositories, remember about permissions.
\ No newline at end of file
+ - create new virtualenv,
+ - run python setup.py install
+ - goto build/ directory
+ - goto pylons_app/lib and run python db_manage.py it should create all 
+   needed tables and an admin account. 
+ - Edit file repositories.config and change the [paths] where you keep your
+   mercurial repositories, remember about permissions for accessing this dir by
+   hg app.
+ - run paster serve production.ini 
+   the app should be available at the 127.0.0.1:8001, the static files should be
+   missing since in production.ini sets static_files = false change it to true
+   for serving static files in hg app, but i highly recommend to serve 
+   statics by proxy (nginx or similar).
+ - use admin account you created to login.   
\ No newline at end of file
diff --git a/repositories.config b/repositories.config
--- a/repositories.config
+++ b/repositories.config
@@ -2,15 +2,13 @@
 #to do push with autoupdate
 changegroup = hg update >&2
 
-[extensions]
-hgext.highlight=
-#hgk=
-
 [web]
+#for http requests push ssl to false
 push_ssl = false
 allow_archive = gz zip bz2
 allow_push = *
 baseurl = /
 
 [paths]
-/ = /home/marcink/python_workspace/**
+#this path should point to mercurial repositories remeber about '*' at the end
+/ = /home/marcink/python_workspace/*
diff --git a/setup.py b/setup.py
--- a/setup.py
+++ b/setup.py
@@ -11,13 +11,13 @@ setup(
     version=get_version(),
     description='',
     author='marcin kuzminski',
-    author_email='marcin@python-blog.com',
+    author_email='marcin@python-works.com',
     url='',
     install_requires=[
         "Pylons>=1.0.0",
         "SQLAlchemy>=0.6",
         "Mako>=0.3.2",
-        "vcs>=0.1.1",
+        "vcs>=0.1.2",
         "pygments>=1.3.0"
     ],
     setup_requires=["PasteScript>=1.6.3"],