diff --git a/README b/README.rst
similarity index 96%
rename from README
rename to README.rst
index 2c08bf7..acd1a6e 100644
--- a/README
+++ b/README.rst
@@ -151,7 +151,7 @@ files listed in your ``py_modules`` and ``packages``. If any warnings
 are found, the command will exit with an error code::
 
     $ python setup.py flake8
-    
+
 
 
 Original projects
@@ -160,8 +160,9 @@ Original projects
 Flake8 is just a glue project, all the merits go to the creators of the original
 projects:
 
-- pep8: http://github.com/jcrocholl/pep8/
+- pep8: https://github.com/jcrocholl/pep8/
 - PyFlakes: http://divmod.org/trac/wiki/DivmodPyflakes
+- flakey: https://bitbucket.org/icordasc/flakey
 - McCabe: http://nedbatchelder.com/blog/200803/python_code_complexity_microtool.html
 
 Warning / Error codes
@@ -207,7 +208,7 @@ pep8:
 - W603: '<>' is deprecated, use '!='
 - W604: backticks are deprecated, use 'repr()'
 
-pyflakes:
+flakey:
 
 - W402: <module> imported but unused
 - W403: import <module> from line <n> shadowed by loop variable
@@ -228,6 +229,15 @@ McCabe:
 CHANGES
 =======
 
+2.0.0 - 2013-01-xx
+------------------
+
+- Fixes #13: pep8 and flakey are now external dependencies
+- Split run.py into main.py and hooks.py for better logic
+- Expose our parser for our users
+- New feature: Install git and hg hooks automagically
+- By relying on flakey, we also fixed #45 and #35
+
 1.7.0 - 2012-12-21
 ------------------
 
diff --git a/flake8/hooks.py b/flake8/hooks.py
index 970fffa..7d493b8 100644
--- a/flake8/hooks.py
+++ b/flake8/hooks.py
@@ -1,5 +1,7 @@
 import os
-from flake8.util import _initpep8, pep8style, skip_file
+import sys
+from flake8.util import (_initpep8, pep8style, skip_file, get_parser,
+                         ConfigParser)
 from subprocess import Popen, PIPE
 
 
@@ -78,3 +80,65 @@ def find_vcs():
     elif os.path.isdir('.hg'):
         return '.hg/hgrc'
     return ''
+
+
+git_hook_file = """#!/usr/bin/env python
+import sys
+import os
+from flake8.hooks import git_hook
+
+COMPLEXITY = os.getenv('FLAKE8_COMPLEXITY', 10)
+STRICT = os.getenv('FLAKE8_STRICT', False)
+
+
+if __name__ == '__main__':
+    sys.exit(git_hook(complexity=COMPLEXITY, strict=STRICT))
+"""
+
+
+def _install_hg_hook(path):
+    c = ConfigParser()
+    c.readfp(open(path, 'r'))
+    if not c.has_section('hooks'):
+        c.add_section('hooks')
+
+    if not c.has_option('hooks', 'commit'):
+        c.set('hooks', 'commit', 'python:flake8.hooks.hg_hook')
+
+    if not c.has_option('hooks', 'qrefresh'):
+        c.set('hooks', 'qrefresh', 'python:flake8.hooks.hg_hook')
+
+    if not c.has_section('flake8'):
+        c.add_section('flake8')
+
+    if not c.has_option('flake8', 'complexity'):
+        c.set('flake8', 'complexity', str(os.getenv('FLAKE8_COMPLEXITY', 10)))
+
+    if not c.has_option('flake8', 'strict'):
+        c.set('flake8', 'strict', os.getenv('FLAKE8_STRICT', False))
+
+    c.write(open(path, 'w+'))
+
+
+def install_hook():
+    vcs = find_vcs()
+
+    if not vcs:
+        p = get_parser()
+        sys.stderr.write('Error: could not find either a git or mercurial '
+                         'directory. Please re-run this in a proper '
+                         'repository.')
+        p.print_help()
+        sys.exit(1)
+
+    status = 0
+    if 'git' in vcs:
+        with open(vcs, 'w+') as fd:
+            fd.write(git_hook_file)
+        os.chmod(vcs, 744)
+    elif 'hg' in vcs:
+        _install_hg_hook(vcs)
+    else:
+        status = 1
+
+    sys.exit(status)
diff --git a/flake8/main.py b/flake8/main.py
index df92450..4cb8969 100644
--- a/flake8/main.py
+++ b/flake8/main.py
@@ -3,42 +3,8 @@ import sys
 import pep8
 import flakey
 import select
-import optparse
 from flake8 import mccabe
-from flake8 import __version__
-from flake8.util import _initpep8, skip_file
-
-pep8style = None
-
-
-def get_parser():
-    """Create a custom OptionParser"""
-
-    def version(option, opt, value, parser):
-        parser.print_usage()
-        parser.print_version()
-        sys.exit(0)
-
-    # Create our own parser
-    parser = optparse.OptionParser('%prog [options] [file.py|directory]',
-                                   version=version)
-    parser.version = '{0} (pep8: {1}, flakey: {2})'.format(
-        __version__, pep8.__version__, flakey.__version__)
-    parser.remove_option('--version')
-    # don't overlap with pep8's verbose option
-    parser.add_option('--builtins', default='', dest='builtins',
-                      help="append builtin functions to flakey's "
-                           "_MAGIC_BUILTINS")
-    parser.add_option('--ignore', default='',
-                      help='skip errors and warnings (e.g. E4,W)')
-    parser.add_option('--exit-zero', action='store_true', default=False,
-                      help='Exit with status 0 even if there are errors')
-    parser.add_option('--max-complexity', default=-1, action='store',
-                      type='int', help='McCabe complexity threshold')
-    parser.add_option('-V', '--version', action='callback',
-                      callback=version,
-                      help='Print the version info for flake8')
-    return parser
+from flake8.util import _initpep8, skip_file, get_parser, pep8style
 
 
 def main():
@@ -48,6 +14,10 @@ def main():
     parser = get_parser()
     opts, sys.argv = parser.parse_args()
 
+    if opts.install_hook:
+        from flake8.hooks import install_hook
+        install_hook()
+
     # make sure pep8 gets the information it expects
     sys.argv.insert(0, 'pep8')
 
diff --git a/flake8/util.py b/flake8/util.py
index 1323857..17ce56f 100644
--- a/flake8/util.py
+++ b/flake8/util.py
@@ -1,10 +1,61 @@
 from __future__ import with_statement
 import re
 import os
+import optparse
+
+try:
+    # Python 2
+    from ConfigParser import ConfigParser
+except ImportError:
+    # Python 3
+    from configparser import ConfigParser
 
 pep8style = None
 
 
+def get_parser():
+    """Create a custom OptionParser"""
+    from flake8 import __version__
+    import flakey
+    import pep8
+
+    def version(option, opt, value, parser):
+        parser.print_usage()
+        parser.print_version()
+        sys.exit(0)
+
+    def help(option, opt, value, parser):
+        parser.print_help()
+        p = pep8.get_parser()
+        p.print_help()
+
+    # Create our own parser
+    parser = optparse.OptionParser('%prog [options] [file.py|directory]',
+                                   version=version, add_help_option=False)
+    parser.version = '{0} (pep8: {1}, flakey: {2})'.format(
+        __version__, pep8.__version__, flakey.__version__)
+    parser.remove_option('--version')
+    # don't overlap with pep8's verbose option
+    parser.add_option('--builtins', default='', dest='builtins',
+                      help="append builtin functions to flakey's "
+                           "_MAGIC_BUILTINS")
+    parser.add_option('--ignore', default='',
+                      help='skip errors and warnings (e.g. E4,W)')
+    parser.add_option('--exit-zero', action='store_true', default=False,
+                      help='Exit with status 0 even if there are errors')
+    parser.add_option('--max-complexity', default=-1, action='store',
+                      type='int', help='McCabe complexity threshold')
+    parser.add_option('-V', '--version', action='callback',
+                      callback=version,
+                      help='Print the version info for flake8')
+    parser.add_option('--install-hook', default=False, action='store_true',
+                      help='Install the appropriate hook for this '
+                      'repository.', dest='install_hook')
+    parser.add_option('-h', '--help', action='callback', callback=help,
+                      help='Print this message and exit')
+    return parser
+
+
 def skip_warning(warning, ignore=[]):
     # XXX quick dirty hack, just need to keep the line in the warning
     if not hasattr(warning, 'message'):
diff --git a/setup.py b/setup.py
index 0cb9cee..0b6360d 100644
--- a/setup.py
+++ b/setup.py
@@ -28,7 +28,7 @@ else:
 
 from flake8 import __version__
 
-README = open('README').read()
+README = open('README.rst').read()
 
 setup(
     name="flake8",