diff -r f6ad52152040 -r e655d965307c src/Tools/VSCode/extension/README.md
--- a/src/Tools/VSCode/extension/README.md	Wed Jan 25 18:26:35 2017 +0100
+++ b/src/Tools/VSCode/extension/README.md	Wed Jan 25 23:08:29 2017 +0100
@@ -10,9 +10,16 @@
 
 ## Important User Settings ##
 
-  * `isabelle.home` points to the main Isabelle directory (ISABELLE_HOME).
-  * `isabelle.cygwin_root` (on Windows) points to the Cygwin installation,
-    e.g. ISABELLE_HOME/cygwin for a regular Isabelle application bundle.
+  * On Linux and Mac OS X: `isabelle.home` points to the main Isabelle
+    directory (`$ISABELLE_HOME`).
+
+  * On Windows: `isabelle.home` as above, but in Windows path notation with
+    drive-letter and backslashes.
+
+    Moreover, `isabelle.cygwin_root` needs to point to a suitable Cygwin
+    installation, e.g. `$ISABELLE_HOME\contrib\cygwin` for a regular Isabelle
+    application bundle, or `C:\cygwin` for a stand-alone installation used
+    with Isabelle repository snapshot.
 
 
 ## Isabelle symbols ##
@@ -20,6 +27,6 @@
 Isabelle symbols like `\<forall>` may be rendered using the extension Prettify
 Symbols Mode. It needs to be configured manually as follows:
 
-ISABELLE_HOME/src/Tools/VSCode/extension/isabelle-symbols.json contains a
+$ISABELLE_HOME/src/Tools/VSCode/extension/isabelle-symbols.json contains a
 configuration (generated via `isabelle vscode_symbols`). Its content needs to
 be copied carefully into the regular VSCode User Preferences.