chore(docs): Update readme instructions (angular#506)

Include troubleshooting steps for "Cannot find namespace 'firebase'"
Update versions and syntax to match latest angular-cli output.

Author: katowulf

docs/1-install-and-setup.md

@@ -4,8 +4,6 @@
 
 **The setups below use the Webpack branch of the [Angular CLI](https://github.com/angular/angular-cli).**
 
-**For the Broccoli/System.js branch [see this set up guide](broccoli-system-js-cli-setup.md)**
-
 ### 0. Prerequisites
 
 You need the Angular CLI, typings, and TypeScript 2.0. TypeScript 2.0 is required for AngularFire2.
@@ -16,9 +14,20 @@ npm install -g angular-cli@webpack
 npm install angular-cli@webpack --save-dev
 # make sure you have typings installed
 npm install -g typings 
-npm install -g [email protected]
+npm install -g [email protected]
+```
+
+Verify you have the correct version installed by running `ng -v` and ensuring that you see `angular-cli: 1.x.x-beta.x-webpack.x`. If not, you may need to do the following:
+
+```bash
+# if you have the wrong cli version only
+npm uninstall -g angular-cli
+
+# reinstall clean version
+npm install -g angular-cli@webpack 
 ```
 
+
 ### 1. Create a new project
 
 ```bash
@@ -28,24 +37,32 @@ cd <project-name>
 
 The Angular CLI's `new` command will set up the latest Angular build in a new project structure.
 
-### 2. Install AngularFire 2 and Firebase
+### 2. Test your Setup
+
+```bash
+ng serve
+open http://localhost:4200
+```
+
+You should see a message that says *App works!*
+
+### 3. Install AngularFire 2 and Firebase
 
 ```bash
 npm install angularfire2 firebase --save
 ```
 
 Now that you have a new project setup, install AngularFire 2 and Firebase from npm.
 
-### 3. Setup @NgModule
+### 4. Setup @NgModule
 
 Open `/src/app/app.module.ts`, inject the Firebase providers, and specify your Firebase configuration. 
 This can be found in your project at [the Firebase Console](https://console.firebase.google.com):
 
 ```ts
 import { BrowserModule } from '@angular/platform-browser';
-import { platformBrowserDynamic } from '@angular/platform-browser-dynamic';
-import { enableProdMode, NgModule } from '@angular/core';
-import { AppComponent, environment } from './app/';
+import { NgModule } from '@angular/core';
+import { AppComponent } from './app.component';
 import { AngularFireModule } from 'angularfire2';
 
 // Must export the config
@@ -68,19 +85,19 @@ export class MyAppModule {}
 
 ```
 
-### 4. Inject AngularFire
+### 5. Inject AngularFire
 
-Open `/src/app/<my-app>.component.ts`, and make sure to modify/delete any tests to get the sample working (tests are still important, you know):
+Open `/src/app/app.component.ts`, and make sure to modify/delete any tests to get the sample working (tests are still important, you know):
 
 ```ts
 import { Component } from '@angular/core';
 import { AngularFire, FirebaseListObservable } from 'angularfire2';
 
 @Component({
   moduleId: module.id,
-  selector: '<my-app>-app',
-  templateUrl: '<my-app>.component.html',
-  styleUrls: ['<my-app>.component.css']
+  selector: 'root-app',
+  templateUrl: 'app.component.html',
+  styleUrls: ['app.component.css']
 })
 export class <MyApp>Component {
   constructor(af: AngularFire) {
@@ -90,29 +107,29 @@ export class <MyApp>Component {
 
 ```
 
-### 5. Bind to a list
+### 6. Bind to a list
 
-In `/src/app/<my-app>.component.ts`:
+In `/src/app/app.component.ts`:
 
 ```ts
 import { Component } from '@angular/core';
 import { AngularFire, FirebaseListObservable } from 'angularfire2';
 
 @Component({
   moduleId: module.id,
-  selector: '<my-app>-app',
-  templateUrl: '<my-app>.component.html',
-  styleUrls: ['<my-app>.component.css']
+  selector: 'root-app',
+  templateUrl: 'app.component.html',
+  styleUrls: ['app.component.css']
 })
-export class <MyApp>Component {
+export class AppComponent {
   items: FirebaseListObservable<any[]>;
   constructor(af: AngularFire) {
     this.items = af.database.list('items');
   }
 }
 ```
 
-Open `/src/app/<my-app>.component.html`:
+Open `/src/app/app.component.html`:
 
 ```html
 <ul>
@@ -122,7 +139,7 @@ Open `/src/app/<my-app>.component.html`:
 </ul>
 ```
 
-### 6. Serve
+### 6. Run your app
 
 ```bash
 ng serve
@@ -133,3 +150,25 @@ Run the serve command and go to `localhost:4200` in your browser.
 And that's it! If it totally borke, file an issue and let us know.
 
 ###[Next Step: Retrieving data as objects](2-retrieving-data-as-objects.md)
+
+### Troubleshooting
+
+#### Cannot find namespace 'firebase'.
+
+If you run into this error while trying to invoke `ng serve`, open `src/tsconfig.json` and add the "types" array as follows:
+
+```json
+{
+  "compilerOptions": {
+    ...
+    "typeRoots": [
+      "../node_modules/@types"
+    ],
+    
+    // ADD THIS
+    "types": [
+      "firebase"
+    ]
+  }
+}
+```