diff --git a/Gemfile b/Gemfile
index 0d65d36..780de06 100644
--- a/Gemfile
+++ b/Gemfile
@@ -2,7 +2,6 @@ source 'http://rubygems.org'
 
 gem 'rails', '3.0.3'
 
-gem "authlogic"
 gem 'mime-types', :require => 'mime/types'
 gem "carrierwave", :git => 'git://github.com/jnicklas/carrierwave.git' 
 # MySQL:
diff --git a/Gemfile.lock b/Gemfile.lock
index d0e3af6..35d9716 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -36,8 +36,6 @@ GEM
       activesupport (= 3.0.3)
     activesupport (3.0.3)
     arel (2.0.6)
-    authlogic (2.1.6)
-      activesupport
     builder (2.1.2)
     erubis (2.6.6)
       abstract (>= 1.0.0)
@@ -100,7 +98,6 @@ PLATFORMS
   ruby
 
 DEPENDENCIES
-  authlogic
   carrierwave!
   fog
   mime-types
diff --git a/README b/README
index e0c5950..0700bc9 100644
--- a/README
+++ b/README
@@ -2,11 +2,7 @@
 
 Made by Espen Antonsen.
 
-Version 1.2.0rc2 for Rails3
-
-Issues:
-- carrierwave not saving to model, only to disk (testet on ubuntu)
-- jpg files not being upload, no error written to log (testet on osx)
+Version 1.2.0 for Rails3
 
 http://balderapp.com
 
@@ -31,17 +27,34 @@ Free for personal use. Contact me for commercial license.
 Rails 3.0
 
 Software
-- ImageMagicK (required for Carrierwave resizing). Can also use ImageScience
-Optional:
-	- ExifTool (required for Mini_EfixTool)
+- ImageMagicK (required for Carrierwave resizing). Can also use ImageScience and MiniMagick
+- ExifTool (required for Mini_EfixTool). Can be disabled.
 
 Ruby Gems
 - AuthLogic
 - Mime-Types
 - Carrierwave
+- Mini_Exiftool (to read exif info to database and write exif to original file. See photo.rb model). Can be disabled.
 Optional:
 	- AWS/S3 (if saving to Amazon s3)
-	- Mini_Exiftool (to read exif info to database. See photo.rb model)
+	
+	
+== Configuration
+
+config/balder.rb has the following adjustable settings:
+
+STORAGE_PATH	Relative path to where the photos are stored. Default: uploads
+				Under the specified path two folders are used. "files" for original files and "thumbs" for generated thumbnails.
+				This can be adjusted in app/uploaders/file_uploader.rb
+PRIVATE			Require visitors to have a user and authenticate before viewing photos.
+TITLE			Title of site
+HEROKU			To be used on heroku.com. This will adjust carrierwave to save to Heroku's tmp area.
+S3_KEY			For saving files to Amazon S3 (required for Heroku)
+S3_SECRET		For saving files to Amazon S3 (required for Heroku)
+S3_BUCKET		For saving files to Amazon S3 (required for Heroku)
+
+As these are environment variables you can easily add them to Heroku:
+http://devcenter.heroku.com/articles/config-vars#rack_env_rails_env_merb_env
 
 == Installation
 
@@ -49,7 +62,7 @@ Optional:
 	GitHub: git clone git://github.com/espen/balder.git
 2. Install required software listed above
 3. 'bundle install' to install required gems.
-4. Adjust the settings in balder.rb
+4. Adjust the settings in balder.rb (See configuration above)
 5. Copy database file (not needed when hosting on Heroku):
 	cp config/database.example.yml config/database.yml
 6. Create database user and edit database file. (unless on Heroku or using SQLite3)
@@ -72,7 +85,16 @@ This format is recommended:
 ./trip to iran/mosque in yazd.jpg
 ./trip to iran/powder snow in dizin.jpg
 
-Every time you manually add photos to disk you must scan by visiting /photos/scan
+Every time you manually add photos to disk you must scan by visiting /photos/scan or run ScanFiles.Scan(false) from the console.
+
+== Version history
+
+1.2.0
+- New storage path: "/uploads/files/" instead of "/uploads/". Make sure you move your photos or adjust the storage path.
+
+== TODO
+
+- Testing...
 
 == Copyright and license info
 
diff --git a/app/models/photo.rb b/app/models/photo.rb
index a68d8cf..086838a 100644
--- a/app/models/photo.rb
+++ b/app/models/photo.rb
@@ -9,7 +9,7 @@ class Photo < ActiveRecord::Base
   
   validates :title, :presence => true
   
-  before_validation :set_title
+  before_validation :set_title, :set_path
   before_create :exif_read
   before_update :exif_write
 
@@ -64,6 +64,10 @@ class Photo < ActiveRecord::Base
   def set_title
     self.title = self.file.file.basename.titleize unless self.title
   end
+
+  def set_path
+    self.path = self.file.file.file.sub(File.expand_path(Rails.root.to_s + '/public/' + ENV['STORAGE_PATH'] + "/files" ) + "/","") unless self.path
+  end
   
   def ensure_file
     #self.destroy if !File.exists?( APP_CONFIG[:photos_path] + self.path )
diff --git a/lib/scan.rb b/lib/scan.rb
index 34a7884..6b0bd08 100644
--- a/lib/scan.rb
+++ b/lib/scan.rb
@@ -34,11 +34,11 @@ module ScanFiles
   def self.ScanFile(path, debug)
     return unless [".jpeg", ".jpg", ".gif", ".png"].include?( File.extname(path).downcase )
     puts "analyze file " + path
-    photo = Photo.find_or_initialize_by_file( path )
+    photo = Photo.find_or_initialize_by_path( path )
     puts "new record " + photo.new_record?.to_s
     if photo.new_record?
       puts "Save file " + path.sub(@photos_path, '')
-      photo.file = File.open( path )
+      photo.file = File.open( path ) unless debug
       photo.album = Album.find_by_path( File.dirname( path ).sub(@photos_path, '') )
       photo.save! unless debug
       photo.file.recreate_versions! unless debug
diff --git a/vendor/plugins/authlogic b/vendor/plugins/authlogic
index a06ec53..e3edaa2 160000
--- a/vendor/plugins/authlogic
+++ b/vendor/plugins/authlogic
@@ -1 +1 @@
-Subproject commit a06ec53ca238c1ad211ff8787f126acf94df4c86
+Subproject commit e3edaa21e62045e677941562f12e518578192e5a