diff --git a/.hgignore b/.hgignore
index 170d72d98..6f1ec71fd 100644
--- a/.hgignore
+++ b/.hgignore
@@ -8,6 +8,7 @@ docs/build
 html
 examples/media/pygments/*
 examples/media/objectstore/*
+build/*
 .project
 .pydevproject
 .settings
diff --git a/setup.py b/setup.py
index 8225e98b1..0015f0d9b 100644
--- a/setup.py
+++ b/setup.py
@@ -12,9 +12,11 @@ setup(
     description = "A lightweight REST framework for Django.",
     author = 'Tom Christie',
     author_email = 'tom@tomchristie.com',
-    packages = ['djangorestframework'],
-    include_package_data = True,
-    zip_safe = False,
+    packages = ['djangorestframework',
+                'djangorestframework.templatetags',
+                'djangorestframework.tests'],
+    package_dir={'djangorestframework': 'djangorestframework'},
+    package_data = {'djangorestframework': ['templates/*', 'static/*']},
     classifiers = [
         'Development Status :: 4 - Beta',
         'Environment :: Web Environment',
@@ -25,4 +27,5 @@ setup(
         'Programming Language :: Python',
         'Topic :: Internet :: WWW/HTTP',
     ]
-)
\ No newline at end of file
+)
+