diff --git a/README.md b/README.md
index 05bd8e1..d2dbd70 100644
--- a/README.md
+++ b/README.md
@@ -2,21 +2,43 @@
 
 [![Docker](https://img.shields.io/docker/pulls/vera-ai/latest)](https://hub.docker.com/r/vera-ai/latest)
 
-**Vera-AI** is a transparent proxy for Ollama that adds persistent memory using Qdrant vector storage.
+**Vera-AI** is a transparent proxy for Ollama that adds persistent memory using Qdrant vector storage. It sits between your AI client and Ollama, automatically augmenting conversations with relevant context from previous sessions.
+
+## Features
+
+- **Persistent Memory**: Conversations are stored in Qdrant and retrieved contextually
+- **Monthly Curation**: Daily and monthly cleanup of raw memories
+- **4-Layer Context**: System prompt + semantic memory + recent context + current messages
+- **Configurable UID/GID**: Match container user to host user for volume permissions
+- **Timezone Support**: Scheduler runs in your local timezone
+- **Debug Logging**: Optional debug logs written to configurable directory
+
+## Prerequisites
+
+- **Ollama**: Running LLM inference server (e.g., `http://10.0.0.10:11434`)
+- **Qdrant**: Running vector database (e.g., `http://10.0.0.22:6333`)
+- **Docker**: Docker and Docker Compose installed
+- **Git**: For cloning the repository
 
 ## Quick Start
 
 ```bash
-# Clone or copy the project
-git clone https://github.com/your-org/vera-ai.git
-cd vera-ai
+# Clone the repository
+git clone http://10.0.0.61:3000/SpeedyFoxAi/vera-ai-v2.git
+cd vera-ai-v2
 
-# Create environment file
+# Create environment file from template
 cp .env.example .env
 
 # Edit .env with your settings
 nano .env
 
+# Create required directories
+mkdir -p config prompts logs
+
+# Copy default config (or create your own)
+cp config.toml config/
+
 # Build and run
 docker compose build
 docker compose up -d
@@ -25,6 +47,128 @@ docker compose up -d
 curl http://localhost:11434/
 ```
 
+## Full Setup Instructions
+
+### 1. Clone Repository
+
+```bash
+git clone http://10.0.0.61:3000/SpeedyFoxAi/vera-ai-v2.git
+cd vera-ai-v2
+```
+
+### 2. Create Environment File
+
+Create `.env` file (or copy from `.env.example`):
+
+```bash
+# User/Group Configuration (match your host user)
+APP_UID=1000
+APP_GID=1000
+
+# Timezone Configuration
+TZ=America/Chicago
+
+# API Keys (optional)
+# OPENROUTER_API_KEY=your_api_key_here
+```
+
+**Important:** `APP_UID` and `APP_GID` must match your host user's UID/GID for volume permissions:
+
+```bash
+# Get your UID and GID
+id -u   # UID
+id -g   # GID
+
+# Set in .env
+APP_UID=1000  # Replace with your UID
+APP_GID=1000  # Replace with your GID
+```
+
+### 3. Create Required Directories
+
+```bash
+# Create directories
+mkdir -p config prompts logs
+
+# Copy default configuration
+cp config.toml config/
+
+# Verify prompts exist (should be in the repo)
+ls -la prompts/
+# Should show: curator_prompt.md, systemprompt.md
+```
+
+### 4. Configure Ollama and Qdrant
+
+Edit `config/config.toml`:
+
+```toml
+[general]
+ollama_host = "http://YOUR_OLLAMA_IP:11434"
+qdrant_host = "http://YOUR_QDRANT_IP:6333"
+qdrant_collection = "memories"
+embedding_model = "snowflake-arctic-embed2"
+debug = false
+
+[layers]
+semantic_token_budget = 25000
+context_token_budget = 22000
+semantic_search_turns = 2
+semantic_score_threshold = 0.6
+
+[curator]
+run_time = "02:00"           # Daily curator time
+full_run_time = "03:00"      # Monthly full curator time
+full_run_day = 1             # Day of month (1st)
+curator_model = "gpt-oss:120b"
+```
+
+### 5. Build and Run
+
+```bash
+# Build with your UID/GID
+APP_UID=$(id -u) APP_GID=$(id -g) docker compose build
+
+# Run with timezone
+docker compose up -d
+
+# Check status
+docker ps
+docker logs vera-ai --tail 20
+
+# Test health endpoint
+curl http://localhost:11434/
+# Expected: {"status":"ok","ollama":"reachable"}
+```
+
+### 6. Verify Installation
+
+```bash
+# Check container is healthy
+docker ps --format "table {{.Names}}\t{{.Status}}"
+# Expected: vera-ai   Up X minutes (healthy)
+
+# Check timezone
+docker exec vera-ai date
+# Should show your timezone (e.g., CDT for America/Chicago)
+
+# Check user
+docker exec vera-ai id
+# Expected: uid=1000(appuser) gid=1000(appgroup)
+
+# Check directories
+docker exec vera-ai ls -la /app/prompts/
+# Should show: curator_prompt.md, systemprompt.md
+
+docker exec vera-ai ls -la /app/logs/
+# Should be writable
+
+# Test chat
+curl -X POST http://localhost:11434/api/chat \
+  -H "Content-Type: application/json" \
+  -d '{"model":"YOUR_MODEL","messages":[{"role":"user","content":"hello"}],"stream":false}'
+```
+
 ## Configuration
 
 ### Environment Variables (.env)
@@ -33,49 +177,44 @@ curl http://localhost:11434/
 |----------|---------|-------------|
 | `APP_UID` | `999` | User ID for container user (match your host UID) |
 | `APP_GID` | `999` | Group ID for container group (match your host GID) |
-| `TZ` | `UTC` | Timezone for scheduler (e.g., `America/Chicago`) |
+| `TZ` | `UTC` | Timezone for scheduler |
 | `OPENROUTER_API_KEY` | - | API key for cloud model routing (optional) |
-
-### Getting UID/GID
-
-```bash
-# Get your UID and GID
-id -u   # UID
-id -g   # GID
-
-# Set in .env
-APP_UID=1000
-APP_GID=1000
-```
+| `VERA_CONFIG_DIR` | `/app/config` | Configuration directory (optional) |
+| `VERA_PROMPTS_DIR` | `/app/prompts` | Prompts directory (optional) |
+| `VERA_LOG_DIR` | `/app/logs` | Debug log directory (optional) |
 
 ### Volume Mappings
 
 | Host Path | Container Path | Mode | Purpose |
 |-----------|---------------|------|---------|
-| `./config/` | `/app/config/` | `ro` | Configuration files |
+| `./config/config.toml` | `/app/config/config.toml` | `ro` | Configuration file |
 | `./prompts/` | `/app/prompts/` | `rw` | Curator and system prompts |
+| `./logs/` | `/app/logs/` | `rw` | Debug logs (when debug=true) |
 
 ### Directory Structure
 
 ```
-vera-ai/
+vera-ai-v2/
 ├── config/
-│   └── config.toml       # Main configuration
+│   └── config.toml       # Main configuration (mounted read-only)
 ├── prompts/
 │   ├── curator_prompt.md # Prompt for memory curator
 │   └── systemprompt.md   # System context (curator can append)
+├── logs/                 # Debug logs (when debug=true)
 ├── app/
-│   ├── main.py
-│   ├── config.py
-│   ├── curator.py
-│   ├── proxy_handler.py
-│   ├── qdrant_service.py
-│   └── utils.py
+│   ├── main.py           # FastAPI application
+│   ├── config.py         # Configuration loading
+│   ├── curator.py        # Memory curation
+│   ├── proxy_handler.py  # Chat request handling
+│   ├── qdrant_service.py # Qdrant operations
+│   ├── singleton.py      # QdrantService singleton
+│   └── utils.py          # Utilities
 ├── static/               # Legacy (symlinks to prompts/)
 ├── .env.example          # Environment template
 ├── docker-compose.yml    # Docker Compose config
 ├── Dockerfile            # Container definition
-└── requirements.txt      # Python dependencies
+├── requirements.txt      # Python dependencies
+└── README.md             # This file
 ```
 
 ## Docker Compose
@@ -94,24 +233,17 @@ services:
     env_file:
       - .env
     volumes:
-      - ./config:/app/config:ro
+      - ./config/config.toml:/app/config/config.toml:ro
       - ./prompts:/app/prompts:rw
+      - ./logs:/app/logs:rw
     network_mode: "host"
     restart: unless-stopped
-```
-
-## Build & Run
-
-```bash
-# Build with custom UID/GID
-APP_UID=$(id -u) APP_GID=$(id -g) docker compose build
-
-# Run with timezone
-TZ=America/Chicago docker compose up -d
-
-# Or use .env file
-docker compose build
-docker compose up -d
+    healthcheck:
+      test: ["CMD", "python", "-c", "import urllib.request; urllib.request.urlopen('http://localhost:11434/')"]
+      interval: 30s
+      timeout: 10s
+      retries: 3
+      start_period: 10s
 ```
 
 ## Timezone Configuration
@@ -154,11 +286,33 @@ curl -X POST http://localhost:11434/curator/run
 curl -X POST "http://localhost:11434/curator/run?full=true"
 ```
 
+## Memory System
+
+### 4-Layer Context
+
+1. **System Prompt**: From `prompts/systemprompt.md`
+2. **Semantic Memory**: Curated Q&A pairs retrieved by relevance
+3. **Recent Context**: Last N conversation turns
+4. **Current Messages**: User/assistant messages from request
+
+### Curation Schedule
+
+| Schedule | Time | What | Frequency |
+|----------|------|------|-----------|
+| Daily | 02:00 | Recent 24h raw memories | Every day |
+| Monthly | 03:00 on 1st | ALL raw memories | 1st of month |
+
+### Memory Types
+
+- **raw**: Unprocessed conversation turns
+- **curated**: Cleaned, summarized Q&A pairs
+- **test**: Test entries (can be ignored)
+
 ## Troubleshooting
 
 ### Permission Denied
 
-If you see permission errors on `/app/prompts/`:
+If you see permission errors on `/app/prompts/` or `/app/logs/`:
 
 ```bash
 # Check your UID/GID
@@ -188,9 +342,63 @@ TZ=America/Chicago
 docker logs vera-ai --tail 50
 
 # Check Ollama connectivity
-docker exec vera-ai python -c "import urllib.request; print(urllib.request.urlopen('http://10.0.0.10:11434/').read())"
+docker exec vera-ai python -c "import urllib.request; print(urllib.request.urlopen('http://YOUR_OLLAMA_IP:11434/').read())"
+
+# Check Qdrant connectivity
+docker exec vera-ai python -c "import urllib.request; print(urllib.request.urlopen('http://YOUR_QDRANT_IP:6333/').read())"
+```
+
+### Container Not Starting
+
+```bash
+# Check if port is in use
+sudo lsof -i :11434
+
+# Check Docker logs
+docker compose logs
+
+# Rebuild from scratch
+docker compose down
+docker compose build --no-cache
+docker compose up -d
+```
+
+## Development
+
+### Building from Source
+
+```bash
+# Clone repository
+git clone http://10.0.0.61:3000/SpeedyFoxAi/vera-ai-v2.git
+cd vera-ai-v2
+
+# Install dependencies locally (optional)
+pip install -r requirements.txt
+
+# Build Docker image
+docker compose build
+```
+
+### Running Tests
+
+```bash
+# Test health endpoint
+curl http://localhost:11434/
+
+# Test chat endpoint
+curl -X POST http://localhost:11434/api/chat \
+  -H "Content-Type: application/json" \
+  -d '{"model":"qwen3.5:397b-cloud","messages":[{"role":"user","content":"test"}],"stream":false}'
+
+# Test curator
+curl -X POST http://localhost:11434/curator/run
 ```
 
 ## License
 
-MIT License - see LICENSE file for details.
\ No newline at end of file
+MIT License - see LICENSE file for details.
+
+## Support
+
+- **Issues**: http://10.0.0.61:3000/SpeedyFoxAi/vera-ai-v2/issues
+- **Repository**: http://10.0.0.61:3000/SpeedyFoxAi/vera-ai-v2
\ No newline at end of file