diff --git a/README.rst b/README.rst
index 830fec05..60462f0f 100644
--- a/README.rst
+++ b/README.rst
@@ -1,11 +1,12 @@
+******
 mopidy
-======
+******
 
 mopidy is an MPD server with a Spotify backend.
 
 
 Goal
-----
+====
 
 Using a standard MPD client we want to search for music in Spotify, manage
 Spotify play lists and play music from Spotify.
@@ -16,6 +17,17 @@ modular, so we can extend it with other backends in the future, like file
 playback and other online music services such as Last.fm.
 
 
+Backends
+========
+
+To use the despotify backend, you first need to install despotify and spytify.
+Alternatively, we are working on a libspotify backend, which requires you to
+install libspotify and pyspotify.
+
+Both backends require a Spotify premium account, while only the libspotify
+backend requires you to get an application key from Spotify before use.
+
+
 Installing despotify and spytify
 --------------------------------
 
@@ -55,8 +67,41 @@ tracks, play 10s from a random song from the search result, pause for two
 seconds, play for five more seconds, and quit.
 
 
+Installing libspotify and pyspotify
+-----------------------------------
+
+As libspotify's installation script at the moment is somewhat broken (see this
+`GetSatisfaction thread <http://getsatisfaction.com/spotify/topics/libspotify_please_fix_the_installation_script>`_
+for details), it is easiest to use the libspotify files bundled with pyspotify.
+The files bundled with pyspotify are for 64-bit, so if you run a 32-bit OS, you
+must get libspotify from https://developer.spotify.com/en/libspotify/.
+
+Install pyspotify's dependencies. At Debian/Ubuntu systems::
+
+    sudo aptitude install python-alsaaudio
+
+Check out the pyspotify code, and install it::
+
+    git clone git://github.com/winjer/pyspotify.git
+    cd pyspotify
+    export LD_LIBRARY_PATH=$PWD/lib
+    sudo python setup.py develop
+
+Apply for an application key at
+https://developer.spotify.com/en/libspotify/application-key, download the
+binary version, and place the file at ``pyspotify/spotify_appkey.key``.
+
+Test your libspotify setup::
+
+    ./example1.py -u USERNAME -p PASSWORD
+
+Until Spotify fixes their installation script, you'll have to set
+``LD_LIBRARY_PATH`` every time you are going to use libspotify (in other words
+before starting mopidy).
+
+
 Running mopidy
---------------
+==============
 
 Create a file name ``local_settings.py`` in the same directory as
 ``settings.py``. Enter your Spotify Premium account's username and password
@@ -73,7 +118,7 @@ To stop mopidy, press ``CTRL+C``.
 
 
 Running tests
--------------
+=============
 
 To run tests, you need a couple of dependiencies. Some can be installed through Debian/Ubuntu package management::
 
@@ -90,7 +135,7 @@ Then, to run all tests::
 
 
 Resources
----------
+=========
 
 - MPD
 
@@ -101,6 +146,6 @@ Resources
 
   - `spytify <http://despotify.svn.sourceforge.net/viewvc/despotify/src/bindings/python/>`_,
     the Python bindings for `despotify <http://despotify.se/>`_
-  - `Spotify's official metadata API <http://developer.spotify.com/en/metadata-api/overview/>`_
-  - `pyspotify <http://github.com/winjer/pyspotify/>`_,
+  - `pyspotify <http://code.google.com/p/pyspotify/>`_,
     Python bindings for the official Spotify library, libspotify
+  - `Spotify's official metadata API <http://developer.spotify.com/en/metadata-api/overview/>`_