Better documentation on alternative directory

The documentation on where to change the settings.php file and where to put it would be good.

Many of us use chatroom on subsites in a multi-site config, so our module is in a different folder than sites/all/modules. Unless I am using a module across multiple sites, I only put it in the folder of the subsite that uses it.

I tried several different ways of making the change listed in the readme file, but nothing worked. Finally I had to turn the module off, move it, then turn it back on.