diff --git a/README.rst b/README.rst
index 87f262dc..83fb8c86 100755
--- a/README.rst
+++ b/README.rst
@@ -32,4 +32,14 @@ This is our documentation for how we get this set up::
   # gunicorn:
   gunicorn refstack.web:app
 
+  # To actually configure this winner, check out the config section and
+  # crack open refstack.cfg in vim.
+  # `vim refstack.cfg`
+
   # Now browse to http://localhost:8000
+
+
+Configuration
+-------------
+
+Coming soon!
diff --git a/alembic.ini b/alembic.ini
index d26c4925..80fbbdee 100755
--- a/alembic.ini
+++ b/alembic.ini
@@ -18,7 +18,7 @@ sqlalchemy.url = driver://user:pass@localhost/dbname
 # path to migration scripts
 script_location = alembic
 
-sqlalchemy.url = sqlite:///refstack.db
+sqlalchemy.url = sqlite:///db.sqlite
 
 
 # Logging configuration
diff --git a/refstack/app.py b/refstack/app.py
index fbdcfb3d..7d36e6d1 100644
--- a/refstack/app.py
+++ b/refstack/app.py
@@ -15,7 +15,11 @@ from .config import DefaultConfig
 #from .admin import admin
 #from .extensions import db, mail, cache, login_manager, oid
 from .extensions import db, mail, login_manager, oid
-from .utils import INSTANCE_FOLDER_PATH
+
+from refstack import utils
+
+
+INSTANCE_FOLDER_PATH = utils.INSTANCE_FOLDER_PATH
 
 
 # For import *
@@ -38,9 +42,17 @@ def create_app(config=None, app_name=None, blueprints=None):
     if blueprints is None:
         blueprints = DEFAULT_BLUEPRINTS
 
+    # NOTE(termie): Flask has this new instance_path stuff that allows
+    # you to keep config and such in different places, but I don't really
+    # see how that is going to be very helpful, so we're going to stick
+    # to using config relative to the root unless we explicitly set such
+    # a path in the INSTANCE_FOLDER_PATH environment variable.
     app = Flask(app_name,
                 instance_path=INSTANCE_FOLDER_PATH,
                 instance_relative_config=True)
+
+
+
     configure_app(app, config)
     configure_hook(app)
     configure_blueprints(app, blueprints)
@@ -50,6 +62,9 @@ def create_app(config=None, app_name=None, blueprints=None):
     configure_template_filters(app)
     configure_error_handlers(app)
 
+    if app.debug:
+        print utils.dump_config(app)
+
     return app
 
 
@@ -59,8 +74,10 @@ def configure_app(app, config=None):
     # http://flask.pocoo.org/docs/api/#configuration
     app.config.from_object(DefaultConfig)
 
-    # http://flask.pocoo.org/docs/config/#instance-folders
-    app.config.from_pyfile('production.cfg', silent=True)
+    # If we've set the INSTANCE_FOLDER_PATH environment var, this may be
+    # loaded from an instance folder, otherwise relative to flask.root_path.
+    #   http://flask.pocoo.org/docs/config/#instance-folders
+    app.config.from_pyfile('refstack.cfg', silent=True)
 
     if config:
         app.config.from_object(config)
@@ -128,7 +145,7 @@ def configure_logging(app):
     import logging
     from logging.handlers import SMTPHandler
 
-    # Set info level on logger, which might be overwritten by handers.
+    # Set info level on logger, which might be overwritten by handlers.
     # Suppress DEBUG messages.
     app.logger.setLevel(logging.INFO)
 
diff --git a/refstack/config.py b/refstack/config.py
index 168efb46..b4487eb9 100644
--- a/refstack/config.py
+++ b/refstack/config.py
@@ -4,16 +4,15 @@
 
 import os
 
-from utils import make_dir, INSTANCE_FOLDER_PATH
+from utils import make_dir, INSTANCE_FOLDER_PATH, PROJECT_ROOT
 
 
 class BaseConfig(object):
 
-    PROJECT = "fbone"
+    PROJECT = "refstack"
 
-    # Get app root path, also can use flask.root_path.
-    # ../../config.py
-    PROJECT_ROOT = os.path.abspath(os.path.dirname(os.path.dirname(__file__)))
+    # The app root path, also can use flask.root_path.
+    PROJECT_ROOT = PROJECT_ROOT
 
     DEBUG = False
     TESTING = False
diff --git a/refstack/utils.py b/refstack/utils.py
index 5def7aa9..45be994d 100644
--- a/refstack/utils.py
+++ b/refstack/utils.py
@@ -6,15 +6,17 @@
     Utils has nothing to do with models and views.
 """
 
-import string
-import random
-import os
-
 from datetime import datetime
+import logging
+import os
+import pprint
+import random
+import string
 
 
-# Instance folder path, make it independent.
-INSTANCE_FOLDER_PATH = os.path.join('/tmp', 'instance')
+# Instance folder path, if set, otherwise project root.
+PROJECT_ROOT = os.path.abspath(os.path.dirname(os.path.dirname(__file__)))
+INSTANCE_FOLDER_PATH = os.environ.get('INSTANCE_FOLDER_PATH', PROJECT_ROOT)
 
 ALLOWED_AVATAR_EXTENSIONS = set(['png', 'jpg', 'jpeg', 'gif'])
 
@@ -104,3 +106,11 @@ def make_dir(dir_path):
             os.mkdir(dir_path)
     except Exception, e:
         raise e
+
+
+### Begin Non-Fbone stuff
+
+
+def dump_config(app):
+    """Useful to dump app config for debug purposes."""
+    return pprint.pformat(dict(app.config.iteritems()))
diff --git a/refstack/web.py b/refstack/web.py
index 675ab692..2472b9cc 100755
--- a/refstack/web.py
+++ b/refstack/web.py
@@ -33,9 +33,6 @@ from refstack import utils
 from refstack.models import *
 
 
-# TODO(termie): temporary hack for first-run experience
-utils.make_dir(utils.INSTANCE_FOLDER_PATH)
-
 # TODO(termie): transition all the routes below to blueprints
 # TODO(termie): use extensions setup from the create_app() call