Update and better explain installation instructions

INSTALL.md

 ============
 
 
-Note that this will only work for dotfiles stored right in your `$HOME`.
-Support for configuration stored in folders like ~/.config/application or
-~/.local/application is planned.
-
-
 To install, you need to perform following steps:
 
 1.  Clone repository to a stable place on your box
 
         $ mv ~/.gnucash ~/local/mydots/dotfiles/gnucash
 
-    This works for directories as well as files, although e.g. for bash, vim
-    or git, I recommend different solutions--see below.
+    If your configs live under `~/.config` folder, put them under a folder
+    similar to the dotfiles:
 
-    Also note that you can name the dotfiles folder whatever you want;
-    there's no real connection with the repository.
+        $ mv ~/.config/dunst ~/local/mydots/dotfiles.config/dunst
+
+    Note that for bash, vim and git, I recommend different solutions--see
+    below.
 
 3.  Run mklinks script with single argument: path to dotfiles folder (or how
     you named it), e.g.:
     makes it easy to exclude some of your applications from some of your
     machines: just skip step 2 for them.
 
+    Pro tip: Notice how the mklinks script discovers your `.config/`-bound
+    files such as dunst.
+
+     1. The path you pointed to is "path/to/dotfiles", so this will be
+        regarded as "base path" of your config pool.
+
+     2. Any members of the *base* directory will be prefixed with single
+        dot and symlinked *directly* to your home--just as the ancient
+        tradition dictates.
+
+     3. If the "base path" has neighbor called the same but with suffix
+        `.config`, i.e. `path/to/dotfiles.config`, it will symlink all
+        present members to `~/.config` path--just as XDG convention
+        uses in its most common version.
+
+     4. The case is similar for `.local/share` files; here you'll just need
+        to go one step deeper: files that should be linked to `~/.local/share`
+        should be in `dotfiles.local/share`.
+
 
 Instructions for bash
 ---------------------
 
-Although similar technique could be used for bash, I prefer toi have defaults
+Although similar technique could be used for bash, I prefer to have defaults
 specified by distro.  Therefore I use other technique:
 
 Instead of step 2 above, move/merge your specific ~/.bashrc changes to either
 one of these, or preferably, split them as needed:
 
-    dotfiles/bash/global-before.bashrc
+    dotfiles/bash/main.bashrc
     dotfiles/bash/user/<your-username>.bashrc
     dotfiles/bash/host/<your-hostname>.bashrc
-    dotfiles/bash/global-after.bashrc
+    dotfiles/bash/post.bashrc
 
 Then, replace your ~/.bashrc with your default distro's one, commonly found
-in /etc/skel/.bashrc, and patch it with dotfiles/bash/setup/bashrc.diff:
+in /etc/skel/.bashrc, and use `dotfiles/bash/setup` to patch it:
 
     $ cp /etc/skel/.bashrc ~/
-    $ patch -u ~/.bashrc local/mydots/dotfiles/bash/setup/bashrc.diff
+    $ local/mydots/dotfiles/bash/setup
 
-From that point on, .bashrc will source appropriate fies for you, so do not
-make any changes to your local .bashrc, unless you really want them to be
+From that point on, `.bashrc` will source appropriate fies for you, so do not
+make any changes to your local `.bashrc`, unless you really want them to be
 local, i.e. private only.
 
 
 local config is split into parts per user/host or global one, and original
 file becomes just a crossroads into these.
 
-Except that since git does not support expansion in config paths, the fil
+Except that since git does not support expansion in config paths, the file
 must be created by a script.  So what you want to do is the same as for bash
 above, except that instead of applying patch to your .gitconfig, you simply
 delete it and run dotfiles/git/setup.