deleted file mode 100644
--- a/INSTALL.txt
+++ /dev/null
@@ -1,37 +0,0 @@
-Installing Genshi
-=================
-
-Prerequisites
--------------
-
- * Python 2.3 or later (2.4 or later is recommended)
- * Optional: setuptools 0.6a2 or later
-
-
-Installation
-------------
-
-Once you've downloaded and unpacked a Genshi source release, enter the
-directory where the archive was unpacked, and run:
-
-  $ python setup.py install
-
-Note that you may need administrator/root privileges for this step, as
-this command will by default attempt to install Genshi to the Python
-site-packages directory on your system.
-
-For advanced options, please refer to the easy_install and/or the distutils
-documentation:
-
-  http://peak.telecommunity.com/DevCenter/EasyInstall
-  http://docs.python.org/inst/inst.html
-
-
-Support
--------
-
-If you encounter any problems with Genshi, please don't hesitate to ask
-questions on the Genshi mailing list or IRC channel:
-
-  http://genshi.edgewall.org/wiki/MailingList
-  http://genshi.edgewall.org/wiki/IrcChannel

--- a/doc/index.txt
+++ b/doc/index.txt
@@ -20,7 +20,15 @@
 for output generation on the web. The major feature is a template language,
 which is heavily inspired by Kid.
 
+Installation
+------------
+
+* `Installing Genshi <install.html>`_
 * `Upgrading from Previous Versions <upgrade.html>`_
+
+Usage
+-----
+
 * `Markup Streams <streams.html>`_
 * `Templating Basics <templates.html>`_
 * `XML Template Language <xml-templates.html>`_
@@ -29,4 +37,8 @@
 * `Using XPath <xpath.html>`_
 * `Internationalization and Localization <i18n.html>`_
 * `Using the Templating Plugin <plugin.html>`_
+
+API Documentation
+-----------------
+
 * `Generated API Documentation <api/index.html>`_

new file mode 100644
--- /dev/null
+++ b/doc/install.txt
@@ -0,0 +1,88 @@
+Installing Genshi
+=================
+
+
+.. contents:: Contents
+   :depth: 2
+.. sectnum::
+
+
+Prerequisites
+-------------
+
+* Python_ 2.3 or later (2.4 or later is strongly recommended)
+* Optional: Setuptools_ 0.6a2 or later
+
+.. _python: http://www.python.org/
+.. _setuptools: http://cheeseshop.python.org/pypi/setuptools
+
+Setuptools is only required for the `template engine plugin`_, which can be
+used to integrate Genshi with Python web application frameworks such as Pylons
+or TurboGears. Genshi also provides a Setuptools-based plugin that integrates
+its `internationalization support`_ with the Babel_ library, but that support
+can also be used without Setuptools being available (although in a slightly
+less convenient fashion).
+
+.. _`template engine plugin`: plugin.html
+.. _`internationalization support`: i18n.html
+.. _babel: http://babel.edgewall.org/
+
+
+Installing via ``easy_install``
+-------------------------------
+
+If you have a recent version of Setuptools_ installed, you can directly install
+Genshi using the easy_install command-line tool::
+
+  $ easy_install Genshi
+
+This downloads and installs the latest version of the Genshi package.
+
+If you have an older Genshi release installed and would like to upgrade, add
+the ``-U`` option to the above command.
+
+
+Installing from a Binary Installer
+----------------------------------
+
+Binary packages for Windows and Mac OS X are provided for Genshi. To install
+from such a package, simply download and open it.
+
+
+Installing from a Source Tarball
+--------------------------------
+
+Once you've downloaded and unpacked a Genshi source release, enter the
+directory where the archive was unpacked, and run::
+
+  $ python setup.py install
+
+Note that you may need administrator/root privileges for this step, as this
+command will by default attempt to install Genshi to the Python
+``site-packages`` directory on your system.
+
+Genshi comes with an optional extension module written in C that is used to
+improve performance in some areas. This extension is automatically compiled
+when you run the ``setup.py`` script as shown above. In the case that the
+extension can not be compiled, possibly due to a missing or incompatible C
+compiler, the compilation is skipped. If you'd prefer Genshi to not use this
+native extension module, you can explicitly bypass the compilation using the
+``--without-speedups`` option::
+
+  $ python setup.py --without-speedups install
+
+For other build and installation options, please consult the easy_install_
+and/or the Python distutils_ documentation.
+
+.. _easy_install: http://peak.telecommunity.com/DevCenter/EasyInstall
+.. _distutils:  http://docs.python.org/inst/inst.html
+
+
+Support
+-------
+
+If you encounter any problems with Genshi, please don't hesitate to ask
+questions on the Genshi `mailing list`_ or `IRC channel`_.
+
+.. _`mailing list`: http://genshi.edgewall.org/wiki/MailingList
+.. _`irc channel`: http://genshi.edgewall.org/wiki/IrcChannel