Renamed INSTALL.txt to README.md, edited and converted document to markdown.

Author: prisonerjohn

resources/README.md

@@ -0,0 +1,38 @@
+## How to install ##library.name##
+
+### Install with the Contribution Manager
+
+Add contributed libraries by selecting the menu item _Sketch_ → _Import Library..._ → _Add Library..._ This will open the Contribution Manager, where you can browse for ##library.name##, or any other library you want to install.
+
+Not all available libraries have been converted to show up in this menu. If a library isn't there, it will need to be installed manually by following the instructions below.
+
+### Manual Install
+
+Contributed libraries may be downloaded separately and manually placed within the `libraries` folder of your Processing sketchbook. To find (and change) the Processing sketchbook location on your computer, open the Preferences window from the Processing application (PDE) and look for the "Sketchbook location" item at the top.
+
+By default the following locations are used for your sketchbook folder: 
+  * For Mac users, the sketchbook folder is located inside `~/Documents/Processing` 
+  * For Windows users, the sketchbook folder is located inside `My Documents/Processing`
+
+Download ##library.name## from ##library.url##
+
+Unzip and copy the contributed library's folder into the `libraries` folder in the Processing sketchbook. You will need to create this `libraries` folder if it does not exist.
+
+The folder structure for library ##library.name## should be as follows:
+
+```
+Processing
+  libraries
+    ##library.name##
+      examples
+      library
+        ##library.name##.jar
+      reference
+      src
+```
+             
+Some folders like `examples` or `src` might be missing. After library ##library.name## has been successfully installed, restart the Processing application.
+
+### Troubleshooting
+
+If you're having trouble, have a look at the [Processing Wiki](https://github.com/processing/processing/wiki/How-to-Install-a-Contributed-Library) for more information, or contact the author [##author.name##](##author.url##).

resources/build.xml

@@ -52,8 +52,8 @@
 	<property name="project.reference" location="reference"/>
 	<property name="project.dist" location="distribution"/>
 	<property name="project.dist.version" location="distribution/${project.name}-${library.version}"/>
-	<property name="install.source" location="resources/install_instructions.txt"/>
-	<property name="install.destination" location="${project.dist.version}/INSTALL.txt"/>
+	<property name="install.source" location="resources/README.md"/>
+	<property name="install.destination" location="${project.dist.version}/README.md"/>
 	<property name="libprops.source" location="resources/library.properties"/>
 
 	<taskdef resource="net/sf/antcontrib/antcontrib.properties">
@@ -292,7 +292,7 @@ ${line}
 
 
 	<target name="generate.install.library" if="is.normal">	
-		<copy file="${install.source}" tofile="${project.dist.version}/INSTALL.txt" />
+		<copy file="${install.source}" tofile="${install.destination}" />
 
 		<antcall target="parse.file"><param name="file" value="${install.destination}"/></antcall>
 	</target>