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@@ -1,14 +1,96 @@
+About
+=====
+
+Matrix is an ambitious new ecosystem for open federated Instant Messaging and VoIP[1].  
+
+Matrix specifies a set of pragmatic RESTful HTTP JSON APIs as an open standard, providing:
+
+    - Creating and managing fully distributed chat rooms with no
+      single points of control or failure
+    - Eventually-consistent cryptographically secure synchronisation of room 
+	  state across a global open network of federated servers and services
+    - Sending and receiving extensible messages in a room with (optional)
+      end-to-end encryption[2]
+    - Inviting, joining, leaving, kicking, banning room members
+    - Managing user accounts (registration, login, logout)
+    - Using 3rd Party IDs (3PIDs) such as email addresses, phone numbers,
+      Facebook accounts to authenticate, identify and discover users on Matrix.
+    - Placing 1:1 VoIP and Video calls (in development)
+
+These APIs are intended to be implemented on a wide range of servers, services
+and clients which then form the Matrix ecosystem, and allow developers to build
+messaging and VoIP functionality on top of the open Matrix community rather than
+using closed or proprietary solutions.  The hope is for Matrix to act as the
+building blocks for a new generation of fully open and interoperable messaging
+and VoIP apps for the internet.
+
+Synapse is a reference "homeserver" implementation of Matrix from the core
+development team at matrix.org, written in Python/Twisted for clarity and
+simplicity.  It is intended to showcase the concept of Matrix and let folks see
+the spec in the context of a codebase and let you run your own homeserver and
+generally help bootstrap the ecosystem.
+
+In Matrix, every user runs one or more Matrix clients, which connect through to
+a Matrix homeserver which stores all their personal chat history and user
+account information - much as a mail client connects through to an IMAP/SMTP
+server. Just like email, you can either run your own Matrix homeserver and
+control and own your own communications and history or use one hosted by someone
+else (e.g. matrix.org) - there is no single point of control or mandatory
+service provider in Matrix, unlike WhatsApp, Facebook, Hangouts, etc.
+
+Synapse ships with two basic demo Matrix clients: webclient (a basic group chat web client demo implemented in AngularJS) and cmdclient (a basic Python commandline utility which lets you easily see what the JSON APIs are up to).
+
+We'd like to invite you to take a look at the Matrix spec, try to run a homeserver, and join the existing Matrix chatrooms already out there, experiment with the APIs and the demo clients, and let us know your thoughts at https://github.com/matrix-org/synapse/issues or at matrix@matrix.org.
+
+Thanks for trying Matrix!
+
+[1] VoIP currently in development
+[2] End-to-end encryption is currently in development
+
+
+Directory Structure
+===================
+
+::
+    .
+    ├── cmdclient           Basic CLI python Matrix client
+    ├── demo                Scripts for running standalone Matrix demos
+    ├── docs                All doc, including the draft Matrix API spec
+    │   ├── client-server   The client-server Matrix API spec
+    │   ├── model           Domain-specific elements of the Matrix API spec
+    │   ├── server-server   The server-server model of the Matrix API spec
+    │   └── sphinx          The internal API doc of the Synapse homeserver
+    ├── experiments         Early experiments of using Synapse's internal APIs
+    ├── graph               Visualisation of Matrix's distributed message store 
+    ├── synapse             The reference Matrix homeserver implementation
+    │   ├── api                 Common building blocks for the APIs
+    │   │   ├── events              Definition of state representation Events 
+    │   │   └── streams             Definition of streamable Event objects
+    │   ├── app                 The __main__ entry point for the homeserver
+    │   ├── crypto              The PKI client/server used for secure federation
+    │   │   └── resource            PKI helper objects (e.g. keys)
+    │   ├── federation          Server-server state replication logic
+    │   ├── handlers            The main business logic of the homeserver
+    │   ├── http                Wrappers around Twisted's HTTP server & client
+    │   ├── rest                Servlet-style RESTful API
+    │   ├── storage             Persistence subsystem (currently only sqlite3)
+    │   │   └── schema              sqlite persistence schema
+    │   └── util                Synapse-specific utilities
+    ├── tests               Unit tests for the Synapse homeserver
+    └── webclient           Basic AngularJS Matrix web client
+
+
 Installation
 ============
 
-[TODO(kegan): I also needed libffi-dev, which I don't think is included in build-essential.]
+First, the dependencies need to be installed.  Start by installing 
+'python2.7-dev' and the various tools of the compiler toolchain.
 
-First, the dependencies need to be installed. Start by installing 'python-dev'
-and the various tools of the compiler toolchain:
+N.B. that python 2.x where x >= 7 is required.
 
   Installing prerequisites on ubuntu::
 
-    $ sudo apt-get install build-essential python-dev
+    $ sudo apt-get install build-essential python2.7-dev libffi-dev
 
   Installing prerequisites on Mac OS X::
 
@@ -35,12 +117,13 @@ This should end with a 'PASSED' result::
     PASSED (successes=143)
 
 
-Running The Home Server
-=======================
+Running The Synapse Homeserver
+==============================
 
-In order for other home servers to send messages to your server, they will need
-to know its host name. You have two choices here, which will influence the form
-of your user IDs:
+In order for other homeservers to send messages to your server, it will need to
+be publicly visible on the internet, and they will need to know its host name.
+You have two choices here, which will influence the form of your matrix user
+IDs:
 
  1) Use the machine's own hostname as available on public DNS in the form of its
     A or AAAA records. This is easier to set up initially, perhaps for testing,
@@ -58,10 +141,9 @@ For the first form, simply pass the required hostname (of the machine) as the
 
 For the second form, first create your SRV record and publish it in DNS. This
 needs to be named _matrix._tcp.YOURDOMAIN, and point at at least one hostname
-and port where the server is running. (At the current time we only support a
-single server, but we may at some future point support multiple servers, for
-backup failover or load-balancing purposes). The DNS record would then look
-something like::
+and port where the server is running.  (At the current time synapse does not
+support clustering multiple servers into a single logical homeserver).  The DNS
+record would then look something like::
 
     _matrix._tcp    IN      SRV     10 0 8448 machine.my.domain.name.
 
@@ -73,9 +155,13 @@ SRV record, as that is the name other machines will expect it to have::
 You may additionally want to pass one or more "-v" options, in order to
 increase the verbosity of logging output; at least for initial testing.
 
+For the initial alpha release, the homeserver is not speaking TLS for
+either client-server or server-server traffic for ease of debugging. We have
+also not spent any time yet getting the homeserver to run behind loadbalancers.
 
-Running The Web Client
-======================
+
+Running The Demo Web Client
+===========================
 
 At the present time, the web client is not directly served by the homeserver's
 HTTP server. To serve this in a form the web browser can reach, arrange for the
@@ -92,6 +178,7 @@ HTML5 local storage to remember its config), you will need to log in to your
 account. If you don't yet have an account, because you've just started the
 homeserver for the first time, then you'll need to register one.
 
+
 Registering A New Account
 -------------------------
 
@@ -103,7 +190,10 @@ account. Your name will take the form of::
          (pronounced "at localpart on my dot domain dot here")
 
 Specify your desired localpart in the topmost box of the "Register for an
-account" form, and click the "Register" button.
+account" form, and click the "Register" button. Hostnames can contain ports if
+required due to lack of SRV records (e.g. @matthew:localhost:8080 on an internal
+synapse sandbox running on localhost)
+
 
 Logging In To An Existing Account
 ---------------------------------