diff --git a/Makefile.install b/Makefile.install
deleted file mode 100644
index a59a7b84..00000000
--- a/Makefile.install
+++ /dev/null
@@ -1,8 +0,0 @@
-DIR := /opt/trelby
-
-install:
-	rm -rf $(DIR)/*
-	cp * $(DIR)
-	cp $(DIR)/trelby.desktop /usr/share/applications/
-	rm -f $(DIR)/INSTALL $(DIR)/Makefile
-	echo Installation finished
diff --git a/README b/README
index 3dbf0fb9..9ca73666 100644
--- a/README
+++ b/README
@@ -68,13 +68,13 @@ Your freshly created Setup-Trelby-<version>.exe should be ready.
 
 On Linux:
 
- $ cd ~/trelby/src
- $ ./trelby.py --test
+ $ cd ~/trelby/
+ $ src/trelby.py --test
 
 On Windows:
 
- $ cd \trelby\src
- $\python23\python trelby.py --test sample.trelby
+ $ cd \trelby
+ $\python23\python src/trelby.py --test sample.trelby
 
  (Substitute correct path to python.) The file t.bat contains the
  last command.
diff --git a/TODO b/TODO
index 94f17982..5acac60c 100644
--- a/TODO
+++ b/TODO
@@ -12,5 +12,3 @@
 
 -go through README/INSTALL/t.bat etc and make sure nothing references
  python2.3 anymore
-
--move *.py into src/
diff --git a/setup.py b/setup.py
index 73bf0d19..e4de77f6 100755
--- a/setup.py
+++ b/setup.py
@@ -17,7 +17,7 @@
     }
     }
 
-target = { "script" : "trelby.py",
+target = { "script" : "src/trelby.py",
            "icon_resources": [(1, "icon32.ico")],
            }
 
diff --git a/t.bat b/t.bat
index a755d28f..2cff5c8d 100755
--- a/t.bat
+++ b/t.bat
@@ -1 +1 @@
-\python23\python trelby.py --test sample.trelby
+\python23\python src/trelby.py --test sample.trelby
diff --git a/tests/do_tests.py b/tests/do_tests.py
index 3e41b216..0a5fa593 100755
--- a/tests/do_tests.py
+++ b/tests/do_tests.py
@@ -75,7 +75,7 @@ def getFlags(filename):
 # run tests from a single file, either all of them or a specific one.
 def doTest(opts):
     # FIXME
-    sys.path.insert(0, "..")
+    sys.path.insert(0, "../src")
 
     # strip .py suffix
     name = opts.file[0:-3]
@@ -104,7 +104,7 @@ def doTest(opts):
 # run all tests
 def doTests(opts):
     # FIXME
-    sys.path.insert(0, "..")
+    sys.path.insert(0, "../src")
 
     # total number of tests (files)
     cntTotal = 0
diff --git a/trelby.desktop b/trelby.desktop
index 18efb8e4..73afc88a 100644
--- a/trelby.desktop
+++ b/trelby.desktop
@@ -3,7 +3,7 @@ Version=1.6-dev
 Encoding=UTF-8
 Name=Trelby
 Comment=Screenwriting Application
-Exec=/opt/trelby/trelby.py
+Exec=/opt/trelby/src/trelby.py
 Icon=/opt/trelby/resources/icon64.png
 Type=Application
 Categories=Utility;Publishing;