diff --git a/InstallationInstructions.txt b/InstallationInstructions.txt
index e157a467..b9465dfb 100644
--- a/InstallationInstructions.txt
+++ b/InstallationInstructions.txt
@@ -1,4 +1,4 @@
-Version 3.0 of the AeroQuad Flight Software takes advantage of the use of libraries within the Arduino IDE environment.  There are two install methods to use to make sure the AeroQuad libraries are properly deteced by the Arduino IDE.
+Version 3.x of the AeroQuad Flight Software takes advantage of the use of libraries within the Arduino IDE environment.  There are two install methods to use to make sure the AeroQuad libraries are properly deteced by the Arduino IDE.
 
 Method 1:
 - Save the AeroQuad folder into your location of choice.
diff --git a/README.markdown b/README.markdown
index b6f4558b..86a1cb06 100644
--- a/README.markdown
+++ b/README.markdown
@@ -1,7 +1,33 @@
-AeroQuad Flight Software Source Code 3.0.1
+AeroQuad Flight Software Source Code 3.1 Beta 1
 ========================================
 [http://www.AeroQuad.com](http://www.AeroQuad.com)
 
+Version 3.1 Beta 1 Release Notes (7/1/2012)
+----------------------------------------
+* Waypoint following (Waypoints uploaded from Configurator)
+* Auto Descent/Land (Must be tuned for your individual setup)
+* GPS Position Hold
+* GPS Return to Home
+* Obstacle detection
+ * Uses ultrasonic sensors to detect if objects are nearby and displays on the OSD
+* Telemetry over audio channel of your video transmitter
+ * Requires telemetry modem soon to come to AeroQuad store)
+* Option to enable 400Hz update rate to motors (ESC's must support this)
+* Fixed hex configuration motor control
+* OSD improvements to support above features
+ * Ability to tune PIDs and store them
+ * Graphical indication when objects are nearby
+ * Icons to denote flight mode (acro, stable, position hold)
+ * Return to home arrow and distance to home
+* Transmitter switch assignments for new features
+ * AUX1 or AUX2 < 1750 = Altitude hold (baro or ultrasonic)
+ * AUX3 < 1750 = Auto descent/land (baro or ultrasonic)
+* If GPS Navigation Enabled
+ * AUX2 < 1750 = Start waypoint following
+ * AUX1 < 1600 = GPS position hold
+  * If AUX1 in middle switch position = altitude hold
+  * If AUX1 in last position = GPS position hold
+
 Version 3.0.1 Release Notes (2/21/2012)
 ----------------------------------------
 * Updated min/max motor commanding for level flight during yaw