diff --git a/README.md b/README.md
index 3467d36..393eafe 100644
--- a/README.md
+++ b/README.md
@@ -8,15 +8,13 @@ This is the source code to the site operating at [https://lobste.rs](https://lob
 
 - Checkout the lobsters git tree from Github
 
-    $ `git clone git://github.com/jcs/lobsters.git`
-   
-    $ `cd lobsters`
-   
-    lobsters$ 
+         $ git clone git://github.com/jcs/lobsters.git
+         $ cd lobsters
+         lobsters$ 
 
 - Run Bundler to install/bundle gems needed by the project:
 
-    lobsters$ `bundle`
+         lobsters$ bundle
 
 - Create a MySQL (other DBs supported by ActiveRecord may work, only MySQL has been tested) database, username, and password and put them in a `config/database.yml` file:
 
@@ -37,16 +35,30 @@ This is the source code to the site operating at [https://lobste.rs](https://lob
 
 - Load the schema into the new database:
 
-     lobsters$ `rake db:schema:load`
+          lobsters$ rake db:schema:load
 
 - Create a `config/initializers/secret_token.rb` file:
 
-          Lobsters::Application.config.secret_token = '*some 128-bit hexadecimal secret*'
+          Lobsters::Application.config.secret_token = 'some 128-bit hexadecimal secret here'
 
 - (Optional, only needed for search engine) Install Sphinx.  Build Sphinx config and start server:
 
-     lobsters$ `rake thinking_sphinx:rebuild`
+          lobsters$ rake thinking_sphinx:rebuild
 
-- Run the Rails server in development mode:
+- Create an initial administrator user and at least one tag:
 
-     lobsters$ `rails server`
+          lobsters$ rails console
+          Loading development environment (Rails 3.2.6)
+          irb(main):001:0> u = User.new(:username => "test", :email => "test@example.com", :password => "test")
+          irb(main):002:0> u.is_admin = true
+          irb(main):003:0> u.save
+
+          irb(main):004:0> t = Tag.new
+          irb(main):005:0> t.tag = "test"
+          irb(main):006:0> t.save
+
+- The default development hostname is defined as `lobsters.localhost:3000`.  You should define this in `/etc/hosts` (or through DNS) to point to `127.0.0.1`.
+
+- Run the Rails server in development mode.  You should be able to login to `http://lobsters.localhost:3000` with your `test` user:
+
+          lobsters$ rails server