diff --git a/README.txt b/README.txt
index e02acd6..40c66d7 100644
--- a/README.txt
+++ b/README.txt
@@ -15,13 +15,37 @@ is important.
 7. Start at least one instance of memcached on your server.
 8. Edit settings.php to configure the servers, clusters and bins that memcache
    is supposed to use.
-9. Edit settings.php to include either memcache.inc or memcache.db.inc. For
-   example, $conf['cache_inc'] ='sites/all/modules/memcache/memcache.db.inc';
+9. Edit settings.php with the following suggested configuration:
+/**
+ * Memcache Caching
+ */
+
+// the path to the core cache file
+include_once('./includes/cache.inc');
+
+// the path to the memcache cache file
+// Add  either memcache.inc or memcache.db.inc. See discussion below.
+// $conf['cache_backends']['MemcacheDrupal'] = './sites/all/modules/memcache/memcache.db.inc';
+$conf['cache_backends']['MemcacheDrupal'] = './sites/all/modules/memcache/memcache.inc';
+
+// make MemCacheDrupal the default cache class
+$conf['cache_default_class'] = 'MemCacheDrupal';
+
+// The Drupal 7 memcache module uses wildcard naming schemes. The module will cache 
+// everything that Drupal 7 allows to be cached without naming specific bins.
+// See http://drupal.org/node/493448
+// However, you probably do not want to cache the forms. Add this line to place 
+// forms caching into the default Drupal 7 database:
+// See: http://drupal.org/node/1214536#comment-4748042
+$conf['cache_class_cache_form'] = 'DrupalDatabaseCache';
+
 10. Bring your site back online.
 
 For instructions on 1 and 2 above, please see the INSTALLATION.txt file that
 comes with the memcache module download.
 
+# Discussion of memcache.inc, memcache.db.inc  vs Drupal's cache.inc #
+
 Either the memcache.inc or the memcache.db.inc file is intended to be used
 instead of cache.inc, utilizing Drupal's pluggable cache system. The .db.inc
 variant saves all data to the database as well, so the site will still have