diff --git a/app.js b/app.js
index 186e220dde..73cb0c3efa 100644
--- a/app.js
+++ b/app.js
@@ -50,15 +50,9 @@ winston.err = function(err) {
 winston.info('NodeBB v' + pkg.version + ' Copyright (C) 2013 DesignCreatePlay Inc.');
 winston.info('This program comes with ABSOLUTELY NO WARRANTY.');
 winston.info('This is free software, and you are welcome to redistribute it under certain conditions.');
-winston.info('===');
+winston.info('');
 
-
-
-if(nconf.get('upgrade')) {
-	meta.configs.init(function() {
-		require('./src/upgrade').upgrade();
-	});
-} else if (!nconf.get('setup') && nconf.get('base_url')) {
+if (!nconf.get('setup') && !nconf.get('upgrade') && nconf.get('base_url')) {
 	nconf.set('url', nconf.get('base_url') + (nconf.get('use_port') ? ':' + nconf.get('port') : '') + nconf.get('relative_path') + '/');
 	nconf.set('upload_url', nconf.get('url') + 'uploads/');
 
@@ -82,77 +76,39 @@ if(nconf.get('upgrade')) {
 				'categories': require('./src/admin/categories.js')
 			};
 
-		DEVELOPMENT = true;
-
-		global.configuration = {};
 		global.templates = {};
+		templates.init([
+			'header', 'footer', 'logout', 'outgoing', 'admin/header', 'admin/footer', 'admin/index',
+			'emails/reset', 'emails/reset_plaintext', 'emails/email_confirm', 'emails/email_confirm_plaintext',
+			'emails/header', 'emails/footer',
 
-		(function(config) {
-			config['ROOT_DIRECTORY'] = __dirname;
-
-			templates.init([
-				'header', 'footer', 'logout', 'outgoing', 'admin/header', 'admin/footer', 'admin/index',
-				'emails/reset', 'emails/reset_plaintext', 'emails/email_confirm', 'emails/email_confirm_plaintext',
-				'emails/header', 'emails/footer',
-
-				'noscript/header', 'noscript/home', 'noscript/category', 'noscript/topic'
-			]);
-
-			templates.ready(webserver.init);
-
-			//setup scripts to be moved outside of the app in future.
-			function setup_categories() {
-				if (process.env.NODE_ENV === 'development') winston.info('Checking categories...');
-				categories.getAllCategories(function(data) {
-					if (data.categories.length === 0) {
-						winston.info('Setting up default categories...');
+			'noscript/header', 'noscript/home', 'noscript/category', 'noscript/topic'
+		]);
 
-						fs.readFile(config.ROOT_DIRECTORY + '/install/data/categories.json', function(err, default_categories) {
-							default_categories = JSON.parse(default_categories);
-
-							for (var category in default_categories) {
-								admin.categories.create(default_categories[category]);
-							}
-						});
-
-
-						winston.info('Hardcoding uid 1 as an admin');
-						var user = require('./src/user.js');
-						user.makeAdministrator(1);
-
-
-					} else {
-						if (process.env.NODE_ENV === 'development') winston.info('Categories OK. Found ' + data.categories.length + ' categories.');
-					}
-				});
-			}
-
-			setup_categories();
-		}(global.configuration));
+		templates.ready(webserver.init);
 	});
 
+} else if (nconf.get('upgrade')) {
+	meta.configs.init(function() {
+		require('./src/upgrade').upgrade();
+	});
 } else {
 	// New install, ask setup questions
 	if (nconf.get('setup')) winston.info('NodeBB Setup Triggered via Command Line');
 	else winston.warn('Configuration not found, starting NodeBB setup');
 
+	meta.config = {};
 	var	install = require('./src/install');
 
-	process.stdout.write(
-		"\nWelcome to NodeBB!\nThis looks like a new installation, so you'll have to answer a " +
-		"few questions about your environment before we can proceed.\n\n" +
-		"Press enter to accept the default setting (shown in brackets).\n\n\n"
-	);
+	winston.info('Welcome to NodeBB!');
+	winston.info('This looks like a new installation, so you\'ll have to answer a few questions about your environment before we can proceed.');
+	winston.info('Press enter to accept the default setting (shown in brackets).');
 
 	install.setup(function(err) {
 		if (err) {
 			winston.error('There was a problem completing NodeBB setup: ', err.message);
 		} else {
-			if (!nconf.get('setup')) {
-				process.stdout.write(
-					"Please start NodeBB again and register a new user. This user will automatically become an administrator.\n\n"
-				);
-			}
+			winston.info('NodeBB Setup Completed.');
 		}
 
 		process.exit();
diff --git a/package.json b/package.json
index d89e08bb59..af8c787d61 100644
--- a/package.json
+++ b/package.json
@@ -36,7 +36,8 @@
     "winston": "~0.7.2",
     "nodebb-plugin-mentions": "~0.1.0",
     "nodebb-plugin-markdown": "~0.1.0",
-    "rss": "~0.2.0"
+    "rss": "~0.2.0",
+    "prompt": "~0.2.11"
   },
   "bugs": {
     "url": "https://github.com/designcreateplay/NodeBB/issues"
diff --git a/public/src/templates.js b/public/src/templates.js
index be97fdb3c7..5a1bde3378 100644
--- a/public/src/templates.js
+++ b/public/src/templates.js
@@ -65,7 +65,7 @@
 
 			for (var t in templatesToLoad) {
 				(function(file) {
-					fs.readFile(global.configuration.ROOT_DIRECTORY + '/public/templates/' + file + '.tpl', function(err, html) {
+					fs.readFile(__dirname + '/../templates/' + file + '.tpl', function(err, html) {
 						var template = function() {
 							this.toString = function() {
 								return this.html;
@@ -90,8 +90,6 @@
 				config = config_data[0];
 				available_templates = templates_data[0];
 
-
-
 				templates.ready();
 			});
 		}
diff --git a/public/src/utils.js b/public/src/utils.js
index 50323b7327..0deda43610 100644
--- a/public/src/utils.js
+++ b/public/src/utils.js
@@ -17,8 +17,8 @@
 
 		//Adapted from http://stackoverflow.com/questions/5827612/node-js-fs-readdir-recursive-directory-search
 		walk: function(dir, done) {
-			var main_dir = global.configuration.ROOT_DIRECTORY + '/public/templates/';
-			var results = [];
+			var results = [],
+				templateExtract = /\/([\w\d\-_]+)\.tpl$/;
 			fs.readdir(dir, function(err, list) {
 				if (err) return done(err);
 				var pending = list.length;
@@ -32,7 +32,10 @@
 								if (!--pending) done(null, results);
 							});
 						} else {
-							results.push(file.replace(main_dir, '').replace('.tpl', ''));
+							var	templateMatch = file.match(templateExtract);
+
+							if (templateMatch) results.push(templateMatch[1]);
+							// results.push(file.replace(main_dir, '').replace('.tpl', ''));
 							if (!--pending) done(null, results);
 						}
 					});
diff --git a/src/admin/categories.js b/src/admin/categories.js
index c48fdc1a41..cb0ec7c86e 100644
--- a/src/admin/categories.js
+++ b/src/admin/categories.js
@@ -24,7 +24,7 @@ var	RDB = require('./../redis.js'),
 
 			RDB.set('categoryslug:' + slug + ':cid', cid);
 
-			if (callback) callback({'status': 1});
+			if (callback) callback(null);
 		});
 	};
 
diff --git a/src/groups.js b/src/groups.js
index 144cf98f4f..c6f7098774 100644
--- a/src/groups.js
+++ b/src/groups.js
@@ -1,5 +1,6 @@
 var	async = require('async'),
 	User = require('./user'),
+	RDB = RDB || require('./redis'),
 	Groups = {
 		list: function(options, callback) {
 			RDB.hvals('group:gid', function(err, gids) {
diff --git a/src/install.js b/src/install.js
index e032dc7202..04b555f13f 100644
--- a/src/install.js
+++ b/src/install.js
@@ -4,95 +4,186 @@ var	async = require('async'),
 	url = require('url'),
 	path = require('path'),
 	meta = require('./meta'),
+	User = require('./user'),
+	Groups = require('./groups'),
+	Categories = require('./categories'),
+	prompt = require('prompt'),
+	admin = {
+		categories: require('./admin/categories')
+	},
+	winston = require('winston'),
+
 	install = {
 		questions: [
-			'base_url|Publically accessible URL of this installation? (http://localhost)',
-			'port|Port number of your install? (4567)',
-			'use_port|Will you be using a port number to access NodeBB? (y)',
-			'redis:host|Host IP or address of your Redis instance? (127.0.0.1)',
-			'redis:port|Host port of your Redis instance? (6379)',
-			'redis:password|Password of your Redis database? (no password)',
-			'secret|Your NodeBB secret? (keyboard mash for a bit here)'
-		],
-		defaults: {
-			"base_url": 'http://localhost',
-			"port": 4567,
-			"use_port": true,
-			"redis": {
-				"host": '127.0.0.1',
-				"port": 6379,
-				"password": ''
+			{
+				name: 'base_url',
+				description: 'URL of this installation',
+				'default': 'http://localhost',
+				pattern: /^http(?:s)?:\/\//,
+				message: 'Base URL must begin with \'http://\' or \'https://\'',
 			},
-			"secret": utils.generateUUID(),
-			"bcrypt_rounds": 12,
-			"upload_path": '/public/uploads'
-		},
-		ask: function(question, callback) {
-			process.stdin.resume();
-			process.stdout.write(question + ': ');
-
-			process.stdin.once('data', function(data) {
-				callback(data.toString().trim());
-			});
-		},
+			{
+				name: 'port',
+				description: 'Port number of your NodeBB',
+				'default': 4567
+			},
+			{
+				name: 'use_port',
+				description: 'Use a port number to access NodeBB?',
+				'default': 'y',
+				pattern: /y[es]*|n[o]?/,
+				message: 'Please enter \'yes\' or \'no\'',
+			},
+			{
+				name: 'secret',
+				description: 'Please enter a NodeBB secret',
+				'default': utils.generateUUID()
+			},
+			{
+				name: 'redis:host',
+				description: 'Host IP or address of your Redis instance',
+				'default': '127.0.0.1'
+			},
+			{
+				name: 'redis:port',
+				description: 'Host port of your Redis instance',
+				'default': 6379
+			},
+			{
+				name: 'redis:password',
+				description: 'Password of your Redis database'
+			}
+		],
 		setup: function(callback) {
-			var	config = {};
-			for(d in install.defaults) config[d] = install.defaults[d];
+			async.series([
+				function(next) {
+					// prompt prepends "prompt: " to questions, let's clear that.
+					prompt.start();
+					prompt.message = '';
+					prompt.delimiter = '';
 
-			async.eachSeries(install.questions, function(question, next) {
-				var question = question.split('|');
-				install.ask(question[1], function(value) {
-					switch(question[0]) {
-						case 'use_port':
-							value = value.toLowerCase();
-							if (['y', 'yes', ''].indexOf(value) === -1) config[question[0]] = false;
-						break;
-						case 'redis:host':
-							config.redis = config.redis || {};
-							if (value !== '') config.redis.host = value;
-						break;
-						case 'redis:port':
-							config.redis = config.redis || {};
-							if (value !== '') config.redis.port = value;
-						break;
-						case 'redis:password':
-							config.redis = config.redis || {};
-							if (value !== '') config.redis.password = value;
-						break;
+					prompt.get(install.questions, function(err, config) {
+						if (!config) {
+							winston.warn('NodeBB Setup Aborted.');
+							process.exit();
+						}
 
-						default:
-							if (value !== '') config[question[0]] = value;
-						break;
-					}
+						// Translate redis properties into redis object
+						config.redis = {
+							host: config['redis:host'],
+							port: config['redis:port'],
+							password: config['redis:password']
+						};
+						delete config['redis:host'];
+						delete config['redis:port'];
+						delete config['redis:password'];
 
-					next();
-				});
-			}, function() {
-				var urlObject = url.parse(config.base_url),
-					relative_path = (urlObject.pathname && urlObject.pathname.length > 1) ? urlObject.pathname : '',
-					host = urlObject.host,
-					protocol = urlObject.protocol,
-					server_conf = config,
-					client_conf = {
-						socket: {
-							address: protocol + '//' + host + (config.use_port ? ':' + config.port : '')
-						},
-						api_url: protocol + '//' + host + (config.use_port ? ':' + config.port : '') + relative_path + '/api/',
-						relative_path: relative_path
-					};
+						// Add hardcoded values
+						config['bcrypt_rounds'] = 12,
+						config['upload_path'] = '/public/uploads';
 
-				server_conf.base_url = protocol + '//' + host;
-				server_conf.relative_path = relative_path;
+						var urlObject = url.parse(config.base_url),
+							relative_path = (urlObject.pathname && urlObject.pathname.length > 1) ? urlObject.pathname : '',
+							host = urlObject.host,
+							protocol = urlObject.protocol,
+							server_conf = config,
+							client_conf = {
+								socket: {
+									address: protocol + '//' + host + (config.use_port ? ':' + config.port : '')
+								},
+								api_url: protocol + '//' + host + (config.use_port ? ':' + config.port : '') + relative_path + '/api/',
+								relative_path: relative_path
+							};
 
-				meta.configs.set('postDelay', 10000);
-				meta.configs.set('minimumPostLength', 8);
-				meta.configs.set('minimumTitleLength', 3);
-				meta.configs.set('minimumUsernameLength', 2);
-				meta.configs.set('maximumUsernameLength', 16);
-				meta.configs.set('minimumPasswordLength', 6);
-				meta.configs.set('imgurClientID', '');
+						server_conf.base_url = protocol + '//' + host;
+						server_conf.relative_path = relative_path;
 
-				install.save(server_conf, client_conf, callback);
+						meta.configs.set('postDelay', 10000);
+						meta.configs.set('minimumPostLength', 8);
+						meta.configs.set('minimumTitleLength', 3);
+						meta.configs.set('minimumUsernameLength', 2);
+						meta.configs.set('maximumUsernameLength', 16);
+						meta.configs.set('minimumPasswordLength', 6);
+						meta.configs.set('imgurClientID', '');
+
+						install.save(server_conf, client_conf, next);
+					});
+				},
+				function(next) {
+					// Check if an administrator needs to be created
+					Groups.getGidFromName('Administrators', function(err, gid) {
+						if (err) return next(new Error('Could not save configs'));
+
+						if (gid) {
+							Groups.get(gid, {}, function(err, groupObj) {
+								if (groupObj.count > 0) {
+									winston.info('Administrator found, skipping Admin setup');
+									next();
+								} else install.createAdmin(next);
+							});
+						} else install.createAdmin(next);
+					});
+				},
+				function(next) {
+					// Categories
+					categories.getAllCategories(function(data) {
+						if (data.categories.length === 0) {
+							winston.warn('No categories found, populating instance with default categories')
+
+							fs.readFile(path.join(__dirname, '../', 'install/data/categories.json'), function(err, default_categories) {
+								default_categories = JSON.parse(default_categories);
+
+								async.eachSeries(default_categories, function(category, next) {
+									admin.categories.create(category, next);
+								}, function(err) {
+									if (!err) next();
+									else winston.error('Could not set up categories');
+								});
+							});
+						} else {
+							winston.info('Categories OK. Found ' + data.categories.length + ' categories.');
+							next();
+						}
+					});
+				}
+			], callback);
+		},
+		createAdmin: function(callback) {
+			winston.warn('No administrators have been detected, running initial user setup');
+			var	questions = [
+					{
+						name: 'username',
+						description: 'Administrator username',
+						required: true,
+						type: 'string'
+					},
+					{
+						name: 'email',
+						description: 'Administrator email address',
+						pattern: /.+@.+/,
+						required: true
+					},
+					{
+						name: 'password',
+						description: 'Password',
+						required: true,
+						hidden: true,
+						type: 'string'
+					}
+				];
+
+			prompt.get(questions, function(err, results) {
+				nconf.set('bcrypt_rounds', 12);
+				User.create(results.username, results.password, results.email, function(err, uid) {
+					Groups.getGidFromName('Administrators', function(err, gid) {
+						if (gid) Groups.join(gid, uid, callback);
+						else {
+							Groups.create('Administrators', 'Forum Administrators', function(err, groupObj) {
+								Groups.join(groupObj.gid, uid, callback);
+							});
+						}
+					});
+				});
 			});
 		},
 		save: function(server_conf, client_conf, callback) {
@@ -109,10 +200,7 @@ var	async = require('async'),
 					});
 				}
 			], function(err) {
-				process.stdout.write(
-					"\n\nConfiguration Saved OK\n\n"
-				);
-
+				winston.info('Configuration Saved OK');
 				callback(err);
 			});
 		}
diff --git a/src/login.js b/src/login.js
index f4ada02e5f..f7aea087f3 100644
--- a/src/login.js
+++ b/src/login.js
@@ -8,7 +8,6 @@ var user = require('./user.js'),
 (function(Login){
 
 	Login.loginViaLocal = function(username, password, next) {
-
 		if (!username || !password) {
 			return next({
 				status: 'error',
@@ -26,8 +25,7 @@ var user = require('./user.js'),
 				}
 
 				user.getUserFields(uid, ['password', 'banned'], function(err, userData) {
-					if(err)
-						return next(err);
+					if(err) return next(err);
 
 					if(userData.banned && userData.banned === '1') {
 						return next({
@@ -38,7 +36,7 @@ var user = require('./user.js'),
 
 					bcrypt.compare(password, userData.password, function(err, res) {
 						if(err) {
-							winston.err(err);
+							winston.err(err.message);
 							next({
 								status: "error",
 								message: 'bcrypt compare error'
diff --git a/src/routes/api.js b/src/routes/api.js
index 84de81e518..0a96239c0b 100644
--- a/src/routes/api.js
+++ b/src/routes/api.js
@@ -4,13 +4,14 @@ var user = require('./../user.js'),
 	categories = require('./../categories.js')
 	utils = require('./../../public/src/utils.js'),
 	pkg = require('../../package.json'),
-	meta = require('./../meta.js');
+	meta = require('./../meta.js'),
+	path = require('path');
 
 
 (function(Api) {
 	Api.create_routes = function(app) {
 		app.get('/api/get_templates_listing', function(req, res) {
-			utils.walk(global.configuration.ROOT_DIRECTORY + '/public/templates', function(err, data) {
+			utils.walk(path.join(__dirname, '../../', 'public/templates'), function(err, data) {
 				res.json(data);
 			});
 		});
diff --git a/src/routes/user.js b/src/routes/user.js
index f05aed6207..856266fbdb 100644
--- a/src/routes/user.js
+++ b/src/routes/user.js
@@ -131,7 +131,7 @@ var user = require('./../user.js'),
 					return;
 				}
 
-				var absolutePath = path.join(global.configuration['ROOT_DIRECTORY'], global.nconf.get('upload_path'), path.basename(oldpicture));
+				var absolutePath = path.join(__dirname, '../', global.nconf.get('upload_path'), path.basename(oldpicture));
 
 				fs.unlink(absolutePath, function(err) {
 					if(err) {
@@ -152,7 +152,7 @@ var user = require('./../user.js'),
 			}
 
 			var filename = uid + '-profileimg' + extension;
-			var uploadPath = path.join(global.configuration['ROOT_DIRECTORY'], global.nconf.get('upload_path'), filename);
+			var uploadPath = path.join(__dirname, '../', global.nconf.get('upload_path'), filename);
 
 			winston.info('Attempting upload to: '+ uploadPath);
 
diff --git a/src/user.js b/src/user.js
index d087cd4102..271b6874e0 100644
--- a/src/user.js
+++ b/src/user.js
@@ -84,7 +84,7 @@ var utils = require('./../public/src/utils.js'),
 				RDB.incr('usercount', function(err, count) {
 					RDB.handle(err);
 
-					io.sockets.emit('user.count', {count: count});
+					if (typeof io !== 'undefined') io.sockets.emit('user.count', {count: count});
 				});
 
 				RDB.zadd('users:joindate', timestamp, uid);
@@ -93,15 +93,14 @@ var utils = require('./../public/src/utils.js'),
 
 				userSearch.index(username, uid);
 
-				io.sockets.emit('user.latest', {userslug: userslug, username: username});
+				if (typeof io !== 'undefined') io.sockets.emit('user.latest', {userslug: userslug, username: username});
 
 				if (password !== undefined) {
-					User.hashPassword(password, function(hash) {
+					User.hashPassword(password, function(err, hash) {
 						User.setUserField(uid, 'password', hash);
+						callback(null, uid);
 					});
-				}
-
-				callback(null, uid);
+				} else callback(null, uid);
 			});
 		});
 	};
@@ -309,7 +308,7 @@ var utils = require('./../public/src/utils.js'),
 				}
 
 				if (res) {
-					User.hashPassword(data.newPassword, function(hash) {
+					User.hashPassword(data.newPassword, function(err, hash) {
 						User.setUserField(uid, 'password', hash);
 
 						callback({err:null});
@@ -382,9 +381,7 @@ var utils = require('./../public/src/utils.js'),
 		}
 
 		bcrypt.genSalt(nconf.get('bcrypt_rounds'), function(err, salt) {
-			bcrypt.hash(password, salt, function(err, hash) {
-				callback(hash);
-			});
+			bcrypt.hash(password, salt, callback);
 		});
 	}
 
@@ -906,7 +903,7 @@ var utils = require('./../public/src/utils.js'),
 							RDB.handle(err);
 						}
 
-						User.hashPassword(password, function(hash) {
+						User.hashPassword(password, function(err, hash) {
 							User.setUserField(uid, 'password', hash);
 						});