diff --git a/README.md b/README.md
index 34dbeb0..4626603 100644
--- a/README.md
+++ b/README.md
@@ -30,46 +30,8 @@ Install `Node.js`:
 Install Node Package Manager (`npm`):
     See instructions at http://github.com/isaacs/npm.
 
-Install `Express.js` and `Connect` (included automatically):
-    npm install express
-
-Compile the daemon add-on if you plan on letting the server daemonize itself:
-    cd server/libs/daemon
-    node-waf configure build
-    cp build/default/daemon.node .
-    rm -rf build
-
-## Installation for Development
-
-If you want to test Ajax IM as a standalone app for development, you will need
-to install [`Jade`](http://github.com/visionmedia/jade) as well.
-
-To install `Jade`:
-    npm install jade
-
-## Starting up the server
-
-Starting the server in _development_ mode is as simple as:
-    node server/app.js
-
-To start the server in _production_ mode:
-    EXPRESS_ENV=production node server/app.js
-
-To start the server as a _daemon_ in _production_ mode:
-    node server/app.js start production
-
-## Testing it out
-
-Once the server is up and running in _development_ mode, you can test it out
-through the included development testing app. The below instructions are
-assuming that you have left all default configuration options. If not, please
-replace the host/port values with the correct ones.
-
-To get started, first initialize a session cookie by going to:
-    http://localhost:8000/dev/cookie
-
-Then head over to the development page that will initialize the client:
-    http://localhost:8000/dev/
+Install `Socket.io` (included automatically):
+    npm install socket-io
 
 That's it!
 
@@ -82,7 +44,7 @@ That's it!
 ## Node Compatibility
 
 The `master` branch of Ajax IM is compatible with node --version:
-    v0.2.5
+    v0.4.1
 
 ## Contributing
 
diff --git a/server/app.js b/server/app.js
index cb9d37a..ae06ebf 100755
--- a/server/app.js
+++ b/server/app.js
@@ -1,30 +1,84 @@
 #!/usr/bin/env node
 var http = require('http'),
-    io = require('./libs/socket.io'),
+    url = require('url'),
+    fs = require('fs'),
+    io = require('socket.io'),
+    uglifyjs,
     o_ = require('./libs/utils'),
+    client = {
+        'im.js': [
+            'intro.js',
+            'cookies.js', 'dateformat.js', 'json.js', 'md5.js', 'store.js',
+            /*'templates.js',*/ 'im.js',
+            'outro.js'
+        ]
+    },
+    contentTypes = {
+        js: 'text/javascript'
+    },
+    _clientFiles = {},
     server, socket;
+try { var uglifyjs = require('uglify-js'); } catch(e) {}
 
 o_.merge(global, require('./settings'));
 try { o_.merge(global, require('./settings.local')); } catch(e) {}
 
-server = http.createServer(function(req, res) {
-    // Any other server code goes here.
-    res.writeHead(200, {'Content-Type': 'text/html'});
-    res.end('');
-});
+server = http.createServer(_serveClient);
 server.listen(APP_PORT, APP_HOST);
 
-var auth_handler = require('./auth/' + AUTH_LIBRARY)(),
-    session_store = require('./session/' + SESSION_STORE)(),
-    msg_handler = require('./message/' + MESSAGE_HANDLER)(auth_handler, session_store);
+var authHandler = require('./auth/' + AUTH_LIBRARY)(),
+    sessionStore = require('./session/' + SESSION_STORE)(),
+    msgHandler = require('./message/' + MESSAGE_HANDLER)(authHandler, sessionStore);
 
+// setup socket.io
 socket = io.listen(server);
 socket.on('connection', function(client) {
     client.on('message', function(message) {
-        msg_handler.message(client, message);
+        msgHandler.message(client, message);
     });
 
     client.on('disconnect', function() {
-        msg_handler.disconnect(client, SESSION_TIMEOUT);
+        msgHandler.disconnect(client, SESSION_TIMEOUT);
     });
 });
+
+// compile client javascript
+for(var file in client) {
+    var fileData = "";
+    for(var i = 0, fl = client[file].length; i < fl; i++)
+        fileData += fs.readFileSync(
+                        __dirname + '/../client/js/' + client[file][i],
+                        'utf8'
+                    );
+    var ext = file.split('.').pop();
+    if(ext == 'js' && uglifyjs) {
+        // if uglify-js is installed, let's compress
+        fileData = uglifyjs.parser.parse(fileData);
+        fileData = uglifyjs.uglify.ast_mangle(fileData);
+        fileData = uglifyjs.uglify.ast_squeeze(fileData);
+        fileData = uglifyjs.uglify.gen_code(fileData);
+    }
+    _clientFiles[file] = {
+        headers: {
+            'Content-Length': fileData.length,
+            'Content-Type': contentTypes[ext]
+            // Should use ETag
+        },
+        content: fileData,
+        encoding: 'utf8'
+    };
+};
+
+// serve client javascript
+function _serveClient(req, res) {
+    var path = url.parse(req.url).pathname, 
+        file = path.substr(1);
+
+    if(req.method == 'GET' && file in _clientFiles) {
+        res.writeHead(200, _clientFiles[file].headers);
+        res.end(_clientFiles[file].content, _clientFiles[file].encoding);
+    } else {
+        res.writeHead(404);
+        res.end('404');
+    }
+}
\ No newline at end of file
diff --git a/server/settings.js b/server/settings.js
index d9f6796..8cd001d 100644
--- a/server/settings.js
+++ b/server/settings.js
@@ -14,7 +14,7 @@ APP_HOST = 'localhost';
 APP_PORT = 8000;
 
 // Document me!
-AUTH_LIBRARY = 'default';
+AUTH_LIBRARY = 'example';
 SESSION_STORE = 'memory';
 MESSAGE_HANDLER = 'default';