diff --git a/README.md b/README.md
index ef88e11..8a429fb 100644
--- a/README.md
+++ b/README.md
@@ -1,26 +1,36 @@
 # ascii.io [![Build Status](https://secure.travis-ci.org/sickill/ascii.io.png?branch=master)](http://travis-ci.org/sickill/ascii.io)
 
-This is the source code of ascii.io website/player. If you look for ascii.io command line
-recorder go here: https://github.com/sickill/ascii.io-cli
+ASCII.IO is the simplest way to record your terminal and share the recordings
+with your fellow geeks. Simply record and upload your terminal session with
+single command, and ASCII.IO will play it back in your browser.
 
-Below are setup instructions in case you want to contribute and/or play with it
-on your local machine.
+This is the source code of ascii.io website and JS player. If you look for
+ascii.io terminal recorder go here:
+[sickill/ascii.io-cli](https://github.com/sickill/ascii.io-cli)
 
-## Installation
+## Setup instructions
+
+Below you'll find setup instructions in case you want to contribute, play with
+it on your local machine or setup your own instance for your organization.
 
 ### Requirements
 
-ascii.io site is a Ruby on Rails application. You should have following
-installed:
+ascii.io site is a Ruby on Rails application. You need to have installed
+following dependencies:
 
-* ruby 1.9.2+
-* bundler (``gem install bundler``)
+* Ruby 1.9.2+ (Ruby 1.9.3 is recommended)
+* bundler gem
+  `gem install bundler`
+* PostgreSQL 8+ with libpq development headers
+  `sudo apt-get install postgresql libpq-dev` on Debian/Ubuntu
 
-For thumbnail generation you need also:
+Also, for thumbnail generation you need following binaries:
 
 * tmux
-* scriptreplay (Linux only via ``script`` package. OSX users: sorry, your script
-  command is crippled anyway)
+  `sudo apt-get install tmux` on Debian/Ubuntu
+
+* scriptreplay
+  `sudo apt-get install bsdutils` on Debian/Ubuntu
 
 ### Get the source code
 
@@ -29,8 +39,12 @@ For thumbnail generation you need also:
 
 ### Prepare DB config
 
-Copy *config/database.yml.example* to *config/database.yml* and set adapter to
-what you prefer.
+Copy *config/database.yml.example* to *config/database.yml*. Then set
+database/user/password to whatever you prefer.
+
+If database specified in database.yml doesn't exist then the following setup
+task will create it (make sure database user is allowed to create new
+databases).
 
 ### Setup the app