diff --git a/README.txt b/README.rst
rename from README.txt
rename to README.rst
--- a/README.txt
+++ b/README.rst
@@ -1,7 +1,11 @@
-Pylons based replacement for hgwebdir. Fully customizable, 
-with authentication, permissions. Based on vcs library.
+------------
+Pylons based replacement for hgwebdir
+------------
+
+Fully customizable, with authentication, permissions. Based on vcs library.
+**Owerview**
 - has it's own middleware to handle mercurial protocol request each request can
-  be logged and authenticated +threaded performance unlikely to hgweb
+  be logged and authenticated + threaded performance unlikely to hgweb
 - mako templates let's you cusmotize look and feel of appplication.
 - diffs annotations and source code all colored by pygments.
 - admin interface for performing user/permission managments as well as repository
@@ -12,24 +16,27 @@ with authentication, permissions. Based 
 - future support for git
 - based on pylons 1.0 / sqlalchemy 0.6
 
-===
-This software is still in beta mode. I don't guarantee that it'll work.
-I started this project since i was tired of sad looks, and zero controll over
-our company regular hgwebdir.
+
+**Incoming**
+- full permissions per project
+- setup project descriptions and info into db
+- git support (when vcs can handle it)
 
+.. note::
+   This software is still in beta mode. I don't guarantee that it'll work.
+   
 
-== INSTALATION
- - create new virtualenv,
- - run python setup.py install
+-------------
+Installation
+-------------
+ - create new virtualenv and activate it
+ - download hg app and 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
+ - 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).
+ - run paster serve development.ini 
+   the app should be available at the 127.0.0.1:5000
  - use admin account you created to login.   
\ No newline at end of file
diff --git a/development.ini b/development.ini
--- a/development.ini
+++ b/development.ini
@@ -35,7 +35,7 @@ port = 5000
 [app:main]
 use = egg:pylons_app
 full_stack = true
-static_files = false
+static_files = true
 lang=en
 cache_dir = %(here)s/data
 ##a name for our application