diff --git a/README.md b/README.md
index 507f89b43..312411344 100644
--- a/README.md
+++ b/README.md
@@ -37,15 +37,34 @@ JAVA 7 when working with this project.
      the following two commands in separate shells:
 
        ```
-       $ sh run_server.sh
-       $ sh run_client.sh
+       $ sh run_server.sh <team_id> <team_secret> <port>
+       $ sh run_client.sh <host> <port>
        ```
 
-     The `run_server` and `run_client` scripts have hard-coded addresses for
-     your local machine. If you are running the server on a different machine
-     than the client, you will need to change the host portion of the address
-     in `run_client.sh` to the name of the host where your server is running.
-     Make sure the client and server are using the same port number.
+     You must specify the following startup arguments for `run_server.sh:
+     + `<team_id>` and `<team_secret>`: a numeric id for your team, and a secret
+       code, which are used to authenticate your server with the Relay server.
+       You can specify any integer value for `<team_id>`, and a value expressed
+       in hexadecimal format (using numbers `0-9` and letters in the range
+       `A-F`) for `<team_secret>` when you launch the server in your local setup
+       since it will not connect to the Relay server.
+     + `<port>`: the TCP port that your Server will listen on for connections
+       from the Client. You can use any value between 1024 and 65535, as long as
+       there is no other service currently listening on that port in your
+       system. The server will return an error:
+
+         ```
+         java.net.BindException: Address already in use (Bind failed)
+         ```
+
+       if the port is already in use.
+
+     The startup arguments for `run_client.sh` are the following:
+     + `<host>`: the hostname or IP address of the computer on which the server
+       is listening. If you are running server and client on the same computer,
+       you can use `localhost` here.
+     + `<port>`: the port on which your server is listening. Must be the same
+       port number you have specified when you launched `run_server.sh`.
 
 All running images write informational and exceptional events to log files.
 The default setting for log messages is "INFO". You may change this to get
@@ -66,12 +85,13 @@ All the source files (except test-related source files) are in
 use the supplied scripts to build the project, the `.class` files will be placed
 in `./bin`. There is a `./third_party` directory that holds the jar files for
 JUnit (a Java testing framework). Your environment may or may not already have
-this installed. The supplied scripts use the version in ./third_party.
+this installed. The supplied scripts use the version in `./third_party`.
 
 Finally, there are some high-level design documents in the project Wiki. Please
 review them as they can help you find your way around the sources.
 
 
+
 ## Source Directories
 
 The major project components have been separated into their own packages. The