diff --git a/tests/pc/trace/README.md b/tests/pc/trace/README.md
new file mode 100644
index 000000000..81927dafb
--- /dev/null
+++ b/tests/pc/trace/README.md
@@ -0,0 +1,42 @@
+Overview
+---
+TRACE.COM takes an instruction log, as recorded by the PCjs Debugger's traceLog() function, and
+"plays" the instructions back on another machine DOS-compatible 8086 machine, verifying that:
+
+ 1. Results match the recorded results;
+ 2. Any "modified" flags match the recorded flags; and
+ 3. Any "unmodified" flags remain unmodified
+
+The format of an instruction log entry is a series of lines (ASCII characters terminated by an LF),
+where each line looks like:
+
+	F000:EEFF SHL(0480,0002,F006) 1200,F006
+
+specifically:
+
+	address, space, instruction, parenthesis, dst operand, comma, src operand, comma,
+	input flags, parenthesis, space, result, comma, and output flags
+
+WARNING: For the shift and rotate tests to pass on a real x86 CPU, we either have to distinguish
+between single-bit shifts and multi-bit shifts (because the latter leaves PS_OF in an "undefined"
+state), or we have to ignore PS_OF altogether.  For now, I'm specifying PS_ALL_BUT_OF for those
+instructions, even though we'll be missing OVERFLOW validation for all single-bit shifts and rotates.
+
+Operation
+---
+To load TRACE.COM and TRACE.TXT onto a virtual disk image that PCjs can access, you can add an
+"automount" setting to your PCjs <fdc> configuration that will dynamically generate a fresh disk image
+every time the machine is loaded, via the DiskDump API.  This is useful when you're constantly
+generating new test results:
+
+	<fdc id="fdcNEC" automount='{B:{name:"Trace Tests",path:"/tests/pc/trace/trace.com;trace.txt"}}'/>
+
+Alternatively, if you want to run the tests in another virtual PC environment (eg, VMware Fusion),
+you can create an IMG disk image from a directory using DiskDump's command-line interface:
+
+	cd ~/Sites/pcjs/tests/pc
+	node ~/Sites/pcjs/modules/diskdump/bin/diskdump --dir=trace --format=img --output=trace.img
+ 
+OS X users can also create an ISO image like so:
+
+	hdiutil makehybrid -o ~/Sites/pcjs/tests/pc/trace.iso ~/Sites/pcjs/tests/pc/trace -iso -joliet
diff --git a/tests/pc/trace/makefile b/tests/pc/trace/makefile
index 6f4ed266c..5f1239495 100644
--- a/tests/pc/trace/makefile
+++ b/tests/pc/trace/makefile
@@ -1,15 +1,3 @@
-#
-#	To load trace.com and trace.txt onto a virtual disk image that PCjs can access,
-#	add an "automount" setting to your PCjs <fdc> configuration, like so:
-#
-#		<fdc id="fdcNEC" automount='{B:{name:"Trace Tests",path:"/tests/pc/trace/trace.com;trace.txt"}}'/>
-#
-#	Alternatively, if you want to run the tests in another virtual PC environment (eg, VMware Fusion),
-#	you can create a .ISO image on OS X, like so:
-#
-#		hdiutil makehybrid -o ~/Sites/jsmachines/disks/pc/test/trace.iso ~/Sites/jsmachines/tests/pc/trace -iso -joliet
-#
-
 all: trace.com
 
 trace.com: trace.nasm