diff --git a/README.md b/README.md
index dac3b9684cfc4abec6d144ff0299b9cd01960a31..34c3c82f3686c5ff266f10822a1a2c93a3c07cd7 100644
--- a/README.md
+++ b/README.md
@@ -179,24 +179,29 @@ The following instructions are compatible with MATLAB or with Octave/MinGW (as d
 
 ### Setting up the Compilation Environment
 
-- First, you need to setup a Cygwin environment, following the instructions at <http://www.cygwin.com>. You need the following packages:
+- First, you need to setup a Cygwin environment, following the instructions at <http://www.cygwin.com>. You can install either the 32-bit or the 64-bit version. If you opt for the latter, you need to replace `c:\cygwin` by `c:\cygwin64` in the following.
+- Install the following packages:
     - `make`
     - `bison`
     - `flex`
-    - `autoconf` and `autoconf2.5`
-    - `automake` and `automake1.11`
-    - `texlive`, `texlive-collection-latexextra`, `texlive-collection-formatsextra`, `texlive-collection-publishers`
+    - `git`, `gettext`
+    - `autoconf`
+    - `automake`
+    - `texi2html`
+    - `texlive`, `texlive-collection-latexextra`, `texlive-collection-formatsextra`, `texlive-collection-publishers`, `texlive-collection-fontsrecommended`, `texlive-collection-fontsextra`, `texlive-collection-bibtexextra`, `texlive-collection-genericrecommended`, `texlive-collection-mathextra`, `texlive-collection-binextra`
     - `texinfo`
     - `doxygen`
-    - `mingw64-i686-gcc`, `mingw64-i686-gcc-g++`, `mingw64-i686-gcc-fortran` (if you have Octave/MinGW or if you have MATLAB 32-bit)
-    - `mingw64-x86_64-gcc`, `mingw64-x86_64-gcc-g++`, `mingw64-x86_64-gcc-fortran` (if you have MATLAB 64-bit)
+    - `mingw64-i686-gcc-core`, `mingw64-i686-gcc-g++`, `mingw64-i686-gcc-fortran` (if you have Octave/MinGW or if you have MATLAB 32-bit)
+    - `mingw64-x86_64-gcc-core`, `mingw64-x86_64-gcc-g++`, `mingw64-x86_64-gcc-fortran` (if you have MATLAB 64-bit)
 - Second, install precompiled librairies for BLAS, LAPACK, Boost and GSL:
     - If you have Octave or MATLAB 32-bit, download [dynare-mingw32-libs.zip](http://www.dynare.org/DynareWiki/BuildingDynareFromSource?action=AttachFile&do=view&target=dynare-mingw32-libs.zip), and uncompress it in `c:\cygwin\usr\local\lib\mingw32`
     - If you have MATLAB 64-bit, download [dynare-mingw64-libs.zip](http://www.dynare.org/DynareWiki/BuildingDynareFromSource?action=AttachFile&do=view&target=dynare-mingw64-libs.zip), and uncompress it in `c:\cygwin\usr\local\lib\mingw64`
 
+*Remark*: You need to make sure that Cygwin’s git is used and not a potentially installed msysgit. The latter typically happens when one installs msysgit and allows it to set a system path. This will result in wrong line endings and cryptic error messages à la "syntax error near unexpected token `fi'". In that case it might be necessary to uninstall msysgit and reinstall it without setting a system path.
+
 ### Compiling the preprocessor, Dynare++, the MEX for MATLAB and the documentation
 
-Download and uncompress the Dynare source tree, let’s say in `c:\cygwin\home\user\dynare`.
+Install the Dynare source tree, let’s say in `c:\cygwin\home\user\dynare` (by either uncompressing a source archive, or by cloning the git repository with `git clone --recursive http://github.com/DynareTeam/dynare.git`).
 
 Launch a Cygwin shell, and enter the Dynare source tree:
 ```