diff --git a/Makefile.am b/Makefile.am
index 64267cea..027fc63a 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -1,7 +1,5 @@
 SUBDIRS = chat browser shell
 
-bin_SCRIPTS = sugar
-
 sugardir = $(pythondir)/sugar
 sugar_PYTHON =			\
 	__init__.py		\
diff --git a/README b/README
index aaeeea32..425eae31 100644
--- a/README
+++ b/README
@@ -11,28 +11,28 @@ Building
 
 You will need gnome-common.
 
-./autogen.sh
+./autogen.sh --prefix=/usr --sysconfdir=/etc --localstatedir=/var
 make
-make install
+make install # make require root privileges
 
 Running
 =======
 
-sugar
+To run the python sources from your source tree run
 
+ $ ./setup-run-from-source.sh
 
-Debug
-=====
+in the top-level directory. Icons and other resources are still loaded
+from the installed location though.
 
-To run the shell:
+To run the shell
 
-sugar shell
+ $ cd shell/src
+ $ ./shell.py
 
-To run the chat activity:
+You can run activities like this
 
-sugar chat
-
-To run the web activity:
-
-sugar browser
+ $ cd browser
+ $ ./browser.py
 
+(Just remember to have the shell running)
diff --git a/browser/browser.py b/browser/browser.py
index 1027c995..91386f28 100755
--- a/browser/browser.py
+++ b/browser/browser.py
@@ -268,3 +268,6 @@ def main():
 		gtk.main()
 	except KeyboardInterrupt:
 		pass
+
+if __name__=="__main__":
+		main()
diff --git a/setup-run-from-source.sh b/setup-run-from-source.sh
new file mode 100755
index 00000000..69a68477
--- /dev/null
+++ b/setup-run-from-source.sh
@@ -0,0 +1,7 @@
+#!/bin/sh
+
+# for activity.py
+export PYTHONPATH=`pwd`/shell/src/
+
+# for sugar_globals.py
+export PYTHONPATH=$PYTHONPATH:`pwd`/
diff --git a/shell/src/shell.py b/shell/src/shell.py
index 5ce526e3..880c9c8b 100755
--- a/shell/src/shell.py
+++ b/shell/src/shell.py
@@ -300,3 +300,6 @@ def main():
 		gtk.main()
 	except KeyboardInterrupt:
 		pass
+
+if __name__=="__main__":
+		main()
diff --git a/sugar b/sugar
deleted file mode 100755
index 2c4f1052..00000000
--- a/sugar
+++ /dev/null
@@ -1,28 +0,0 @@
-#!/usr/bin/python
-
-import sys
-import os
-
-if len(sys.argv) == 1:
-	# FIXME Start a session
-
-	# We are lucky and this
-	# currently behave as we want.
-	# The chat depends on the
-	# web browser, so both activities
-	# are spanned. But obviously we
-	# need something better.
-
-	import sugar.chat
-	sugar.chat.main()
-elif sys.argv[1] == 'shell':
-	import sugar.shell
-	sugar.shell.main()
-elif sys.argv[1] == 'chat':
-	import sugar.chat
-	sugar.chat.main()
-elif sys.argv[1] == 'browser':
-	import sugar.browser
-	sugar.browser.main()
-else:
-	print "Unkown activity"