diff --git a/ChangeLog.txt b/ChangeLog.txt
index b5039789a..9f425750c 100644
--- a/ChangeLog.txt
+++ b/ChangeLog.txt
@@ -1378,7 +1378,7 @@
 	  directories.  This means that to install a new application, you
 	  simply have to copy the directory (or link it) into the apps/
 	  directory.  If the new directory includes a Makefile and Make.defs
-	  file, the it will automatically be included in the build (2015-08-11).
+	  file, then it will automatically be included in the build (2015-08-11).
 	* apps/Makefile, Kconfig, */Kconfig, tools/mkkconfig.sh: Add the tool
 	  mkkconfig.sh that dynamically builds the apps/Kconfig file at
 	  configuration time.  The hardcoded configuration file has been removed
diff --git a/README.txt b/README.txt
index b65a175e6..77640bd77 100644
--- a/README.txt
+++ b/README.txt
@@ -150,7 +150,7 @@ Building NuttX with Board-Specific Pieces Outside the Source Tree
 
 Q: Has anyone come up with a tidy way to build NuttX with board-
    specific pieces outside the source tree?
-A: Here are four:
+A: Here are three:
 
    1) There is a make target called 'make export'. It will build
       NuttX, then bundle all of the header files, libaries, startup
@@ -176,38 +176,51 @@ A: Here are four:
    3) If you like the random collection of stuff in the apps/ directory
       but just want to expand the existing components with your own,
       external sub-directory then there is an easy way to that too:
-      You just create the sympolic link at apps/external that
-      redirects to your application sub-directory. The apps/Makefile
-      will always automatically check for the existence of an
-      apps/external directory and if it exists, it will automatically
-      incorporate it into the build.
+      You just create a sympolic link in the apps/ directory that
+      redirects to your application sub-directory.
 
-      This feature of the apps/Makefile is documented only here.
+      In order to be incorporated into the build, the directory that
+      you link under the apps/ directory should contain (1) a Makefile
+      that supports the clean and distclean targets (see other Makefiles
+      for examples), and (2) a tiny Make.defs file that simply adds the
+      custon build directories to the variable CONFIGURED_APPS like:
 
-      You can, for example, create a script called install.sh that
+        CONFIGURED_APPS += my_directory1 my_directory2
+
+      The apps/Makefile will always automatically check for the
+      existence of subdirectories containing a Makefile and a Make.defs
+      file.  The Makefile will be used only to support cleaning operations.
+      The Make.defs file provides the set of directories to be built; these
+      directories must also contain a Makefile.  That Makefile must be able
+      to build the sources and add the objects to the apps/libapps.a archive.
+      (see other Makefiles for examples).  It should support the all,
+      install, context, and depend targets.
+
+      apps/Makefile does not depend on any hardcoded lists of directories.
+      Instead, it does a wildcard search to find all appropriate
+      directories.  This means that to install a new application, you
+      simply have to copy the directory (or link it) into the apps/
+      directory.  If the new directory includes a Makefile and Make.defs
+      file, then it will automatically be included in the build.
+
+      If the directory that you add also includes a Kconfig file, then it
+      will automatically be included in the NuttX configuration system as
+      well.  apps/Makefile uses a tool at apps/tools/mkkconfig.sh that
+      dynamically builds the apps/Kconfig file at pre-configuration time.
+
+      NOTE: The native Windows build is temporarily broken until a new
+      apps/tools/mkconfig.bat script is generated (2015-08-11).
+
+      You could, for example, create a script called install.sh that
       installs a custom application, configuration, and board specific
       directory:
 
-      a) Copy 'MyBoard' directory to configs/MyBoard.
-      b) Add a symbolic link to MyApplication at apps/external
-      c) Configure NuttX (usually by:
+        a) Copy 'MyBoard' directory to configs/MyBoard.
+        b) Add a symbolic link to MyApplication at apps/external
+        c) Configure NuttX (usually by:
 
-         tools/configure.sh MyBoard/MyConfiguration
+           tools/configure.sh MyBoard/MyConfiguration
 
-         or simply by copying defconfig->nuttx/.config,
-         setenv.sh->nuttx/setenv.sh, and Make.defs->nuttx/Make.defs.
-
-      Using the 'external' link makes it especially easy to add a
-      'built-in' application an existing configuration.
-
-   4) Add any link to apps/
-
-      a) Add symbolic links apps/ to as many other directories as you
-         want,
-      b) Add the symbolic link to the list of candidate paths in the
-         top level apps/Makefile, and
-      b) Add the (relative) paths to the CONFIGURED_APPS list
-         in the Make.defs file in your new directory.
-
-      That is basically the same as my option #3 but doesn't use the
-      magic 'external' link.
+      Use of the name ''apps/external'' is suggested because that name
+      is included in the .gitignore file and will save you some nuisance
+      when working with GIT.