diff --git a/bin/create b/bin/create
index 8351ebd9..d8b4a7b1 100755
--- a/bin/create
+++ b/bin/create
@@ -43,4 +43,4 @@ ACTIVITY=$ACTIVITY
 TARGET=$TARGET
 eom
 
-(cd $PROJECT_PATH && ./bin/create)
\ No newline at end of file
+(cd $PROJECT_PATH && ./phonegap/create)
diff --git a/bin/templates/project/.phonegap/android/readme.md b/bin/templates/project/.phonegap/android/readme.md
new file mode 100644
index 00000000..152f5a5f
--- /dev/null
+++ b/bin/templates/project/.phonegap/android/readme.md
@@ -0,0 +1 @@
+ok...
diff --git a/bin/templates/project/.phonegap/readme.md b/bin/templates/project/.phonegap/readme.md
new file mode 100644
index 00000000..7028aab8
--- /dev/null
+++ b/bin/templates/project/.phonegap/readme.md
@@ -0,0 +1,3 @@
+this is local config for phonegap stuff to be eventually moved to
+config.xml ...we think. feedback to @davejohnson/@brianleroux
+appreciated here!
diff --git a/bin/templates/project/bin/create b/bin/templates/project/phonegap/create
similarity index 84%
rename from bin/templates/project/bin/create
rename to bin/templates/project/phonegap/create
index 7f398bfa..553a5b55 100755
--- a/bin/templates/project/bin/create
+++ b/bin/templates/project/phonegap/create
@@ -16,8 +16,8 @@ MANIFEST_PATH=./AndroidManifest.xml
 # create the project
 android create project --target $TARGET --path . --package $PACKAGE --activity $ACTIVITY
 
-# copy all the bin scripts etc in there
-cp -R ./bin/templates/project/ .
+# copy all the phonegap scripts etc in there
+cp -R ./phonegap/templates/project/ .
 
 # copy in phonegap.js
 cp ./.phonegap/android/phonegap-$VERSION.js ./assets/www
@@ -26,11 +26,11 @@ cp ./.phonegap/android/phonegap-$VERSION.js ./assets/www
 cp ./.phonegap/android/phonegap-$VERSION.jar ./libs
 
 # copy in default activity
-cat ./bin/templates/Activity.java > $ACTIVITY_PATH
+cat ./phonegap/templates/Activity.java > $ACTIVITY_PATH
 
 # interpolate the acivity name and package
 find "$ACTIVITY_PATH" | xargs grep '__ACTIVITY__' -sl | xargs -L1 sed -i "" "s/__ACTIVITY__/${ACTIVITY}/g"
 find "$ACTIVITY_PATH" | xargs grep '__ID__' -sl | xargs -L1 sed -i "" "s/__ID__/${PACKAGE}/g"
 
 find "$MANIFEST_PATH" | xargs grep '__ACTIVITY__' -sl | xargs -L1 sed -i "" "s/__ACTIVITY__/${ACTIVITY}/g"
-find "$MANIFEST_PATH" | xargs grep '__PACKAGE__' -sl | xargs -L1 sed -i "" "s/__PACKAGE__/${PACKAGE}/g"
\ No newline at end of file
+find "$MANIFEST_PATH" | xargs grep '__PACKAGE__' -sl | xargs -L1 sed -i "" "s/__PACKAGE__/${PACKAGE}/g"
diff --git a/bin/templates/project/bin/debug b/bin/templates/project/phonegap/debug
similarity index 100%
rename from bin/templates/project/bin/debug
rename to bin/templates/project/phonegap/debug
diff --git a/bin/templates/project/bin/emulate b/bin/templates/project/phonegap/emulate
similarity index 100%
rename from bin/templates/project/bin/emulate
rename to bin/templates/project/phonegap/emulate
diff --git a/bin/templates/project/bin/log b/bin/templates/project/phonegap/log
similarity index 100%
rename from bin/templates/project/bin/log
rename to bin/templates/project/phonegap/log
diff --git a/bin/templates/project/bin/templates/Activity.java b/bin/templates/project/phonegap/templates/Activity.java
similarity index 100%
rename from bin/templates/project/bin/templates/Activity.java
rename to bin/templates/project/phonegap/templates/Activity.java
diff --git a/bin/templates/project/bin/templates/project/AndroidManifest.xml b/bin/templates/project/phonegap/templates/project/AndroidManifest.xml
similarity index 100%
rename from bin/templates/project/bin/templates/project/AndroidManifest.xml
rename to bin/templates/project/phonegap/templates/project/AndroidManifest.xml
diff --git a/bin/templates/project/bin/templates/project/assets/www/index.html b/bin/templates/project/phonegap/templates/project/assets/www/index.html
similarity index 100%
rename from bin/templates/project/bin/templates/project/assets/www/index.html
rename to bin/templates/project/phonegap/templates/project/assets/www/index.html
diff --git a/bin/templates/project/bin/templates/project/assets/www/main.js b/bin/templates/project/phonegap/templates/project/assets/www/main.js
similarity index 100%
rename from bin/templates/project/bin/templates/project/assets/www/main.js
rename to bin/templates/project/phonegap/templates/project/assets/www/main.js
diff --git a/bin/templates/project/bin/templates/project/assets/www/master.css b/bin/templates/project/phonegap/templates/project/assets/www/master.css
similarity index 100%
rename from bin/templates/project/bin/templates/project/assets/www/master.css
rename to bin/templates/project/phonegap/templates/project/assets/www/master.css
diff --git a/bin/templates/project/bin/templates/project/res/xml/plugins.xml b/bin/templates/project/phonegap/templates/project/res/xml/plugins.xml
similarity index 100%
rename from bin/templates/project/bin/templates/project/res/xml/plugins.xml
rename to bin/templates/project/phonegap/templates/project/res/xml/plugins.xml
diff --git a/bin/tests/create.coffee b/bin/tests/create.coffee
index 9cb596e0..746e07b2 100644
--- a/bin/tests/create.coffee
+++ b/bin/tests/create.coffee
@@ -1,6 +1,6 @@
-util = require('util')
+util = require 'util'
 exec = require('child_process').exec
-
+path = require 'path'
 
 exports['default example project is generated'] = (test) ->
   test.expect 1
@@ -8,3 +8,14 @@ exports['default example project is generated'] = (test) ->
     test.ok true, "this assertion should pass" unless error?
     test.done()
 
+exports['default example project has a ./.phonegap folder'] = (test) ->
+  test.expect 1
+  path.exists './example/.phonegap', (exists) ->
+    test.ok exists, 'the phonegap folder exists'
+    test.done()
+
+exports['default example project has a /phonegap folder'] = (test) ->
+  test.expect 1
+  path.exists './example/phonegap', (exists) ->
+    test.ok exists, 'the other phonegap folder exists'
+    test.done()