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+# AI Blueprint: Update README.md
+
+**Version:** 1.0.0
+
+## System Rules: AI Blueprint Execution Protocol
+**CRITICAL:** Every time an AI reads or uses this blueprint to perform a task, it MUST adhere to the following strict protocol before finishing:
+1. **Increment Version:** The AI must update the `**Version:**` number at the top of this file. Use Semantic Versioning (e.g., from `1.0.0` to `1.0.1` for task updates).
+2. **Auto-Commit:** The AI must automatically create a git commit encapsulating all changes made during the session.
+3. **Commit Message:** The commit message must include the new version number and a summary of the task performed (e.g., `git commit -am "Blueprint v1.0.1: Completed README update"`).
+
+## Objective
+Update the existing `README.md` to accurately reflect the newly refactored modular architecture of the BookApp project, while strictly minimizing the context window required for the AI (Claude).
+
+## Context to Provide to Claude
+Do **NOT** feed Claude the entire codebase. Only provide the following context to Claude in your prompt:
+1. The contents of the **current** `README.md`.
+2. The **new directory structure** (provided below).
+3. A **brief summary of the refactoring** (provided below).
+
+### New Directory Structure
+```text
+BookApp/
+├── ai/          # AI model integrations and setup
+├── cli/         # Command-line interface and wizard engine
+├── core/        # Core configuration and shared utilities
+├── export/      # Book exporting logic (e.g., EPUB, PDF)
+├── marketing/   # Marketing assets, blurb, and cover generation
+├── story/       # Story generation, planning, writing, and bible tracking
+├── templates/   # HTML templates for the web application
+├── web/         # Flask/FastAPI web application, routes, tasks, and DB
+├── docker-compose.yml
+├── Dockerfile
+├── requirements.txt
+└── README.md
+```
+
+### Summary of Refactoring
+* The application was heavily refactored from monolithic scripts into a clean, modular package structure with distinct separation of concerns.
+* `web/` handles all UI, routing, and background tasks.
+* `story/` handles the core AI writing pipeline.
+* `marketing/` handles post-generation assets.
+* `cli/` handles terminal-based execution (`wizard`).
+
+## Steps for Claude to Execute
+Provide Claude with this exact list of steps:
+
+1. **Analyze:** Read the provided current `README.md` and the new directory structure.
+2. **Update Architecture/Structure:** Completely rewrite the "Project Structure" or "Architecture" section of the README to map to the new directories (`ai/`, `cli/`, `core/`, `export/`, `marketing/`, `story/`, `web/`).
+3. **Update Features:** Update the feature descriptions to reflect the distinct modules (e.g., separating Web UI features from CLI Wizard features, Story generation from Marketing assets).
+4. **Update Instructions:** Ensure the setup and running instructions (Docker or local) remain accurate. Note that web dependencies are in `web/requirements_web.txt` and core dependencies in `requirements.txt`.
+5. **Format:** Output the entirely updated `README.md` in clean Markdown. Ensure it is professional, concise, and well-organized.
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