updated INSTALL file

INSTALL

@@ -35,19 +35,29 @@ then
   	
  $ cd wesnoth-0.x
 
-followed by
+The usual
   	
  $ ./configure
-
-compile with
-
  $ make
-	  
-
-Installing:
-  	
  $ make install
 
+only compiles the wesnoth binary and installs it along with the game
+data to the default prefix which is probably /usr/local.
+
+If you want to build wesnoth_editor too add the --enable-editor
+configure option.
+
+In case you want wesnothd to be built you should add:
+--enable-server --localstatedir=/var/run --with-server-uid=user
+--with-server-gid=group
+
+localstatedir is the location where a wesnothd subdirectory will be
+created owned by user:group. This is relevant if you want to be able 
+to communicate with wesnothd through a fifo file named socket.
+You have to run wesnothd with the user specified while configuring in 
+order for it to work.
+You most likely want to change the default localstatedir since it will
+probably default to PREFIX/var.
 
 Updating: