diff --git a/README b/README
index 92d33389be..155d4faee2 100644
--- a/README
+++ b/README
@@ -16,12 +16,13 @@ Please use master branch for contributions and pull requests. Please do not use
 
 BUILDING RESINSIGHT
 ResInsight uses the cmake build system and requires cmake version 2.8 or higher. Moreover, you need version 4.7.3 of Qt or newer, look below for dependecy list. An out-of-tree build is typically done with
- mkdir resinsight-build
- cd resinsight-build
- cmake ../ResInsight
+ mkdir ResInsight/build
+ cd ResInsight/build
+ cmake ..
  make
  make install
 You will find the ResInsight binary under the Install directory in your build directory.
 
 DEPENDENCIES FOR DEBIAN BASED DISTRIBUTIONS
-sudo apt-get install git cmake build-essential octave octave-headers qt4-dev-tools
+ sudo apt-get install git cmake build-essential octave octave-headers qt4-dev-tools
+If you are running Ubuntu 12.10 or newer, you will need to replace octave-headers with liboctave-dev in the line above.
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