update readme file

README.md

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-chatrooms
+Chatrooms
 =========
 
-Simple chat app made with django
+Chatrooms API made with Django.
+
+##Installation
+==============
+
+NOTE: This project assumes that you have python 2.7 installed on your machine.
+
+First you will need redis to run this project. If you do not have redis installed you can get at http://redis.io/download for your OS. Then you will need to start the redis server. Details on the redis site.
+
+Then create a new virtual environment, activate it and `pip install -r requirements.txt`
+
+Next run `python manage.py syncdb` and `python manage.py runserver`.
+
+Go to http://localhost:8000/ in your browser and you will see the demo running.
+
+##TODO
+======
+
+Finish API and Documentation