diff --git a/hyde/ext/plugins/depends.py b/hyde/ext/plugins/depends.py
index 403b015..b8c7316 100644
--- a/hyde/ext/plugins/depends.py
+++ b/hyde/ext/plugins/depends.py
@@ -16,7 +16,18 @@ class DependsPlugin(Plugin):
     def __init__(self, site):
         super(DependsPlugin, self).__init__(site)
 
-    def begin_text_resource(self, resource, text):
+    def begin_site(self):
+           """
+           Initialize dependencies.
+
+           Go through all the nodes and resources to initialize
+           dependencies at each level.
+           """
+           for resource in self.site.content.walk_resources():
+               self._update_resource(resource)
+
+
+    def _update_resource(self, resource):
         """
         If the meta data for the resource contains a depends attribute,
         this plugin adds an entry to the depends property of the
@@ -33,7 +44,7 @@ class DependsPlugin(Plugin):
         try:
             depends = resource.meta.depends
         except AttributeError:
-            pass
+            return
 
         if not hasattr(resource, 'depends') or not resource.depends:
             resource.depends = []
@@ -46,5 +57,4 @@ class DependsPlugin(Plugin):
                                     resource=resource,
                                     site=self.site,
                                     context=self.site.context))
-        resource.depends = list(set(resource.depends))
-        return text
\ No newline at end of file
+        resource.depends = list(set(resource.depends))
\ No newline at end of file
diff --git a/hyde/generator.py b/hyde/generator.py
index 6977655..d808f35 100644
--- a/hyde/generator.py
+++ b/hyde/generator.py
@@ -124,16 +124,19 @@ class Generator(object):
         """
         Updates the dependencies for the given resource.
         """
-
+        if not resource.source_file.is_text:
+            return []
         rel_path = resource.relative_path
         deps = []
         if hasattr(resource, 'depends'):
             user_deps = resource.depends
             for dep in user_deps:
                 deps.append(dep)
-                deps.extend(self.template.get_dependencies(dep))
+                dep_res = self.site.content.resource_from_relative_path(dep)
+                if dep_res:
+                    deps.extend(self.get_dependencies(dep_res))
 
-        deps.extend(self.template.get_dependencies(resource.relative_path))
+        deps.extend(self.template.get_dependencies(rel_path))
         deps = list(set(deps))
         if None in deps:
             deps.remove(None)
diff --git a/hyde/tests/ext/test_depends.py b/hyde/tests/ext/test_depends.py
index 995011f..b7219a4 100644
--- a/hyde/tests/ext/test_depends.py
+++ b/hyde/tests/ext/test_depends.py
@@ -36,8 +36,7 @@ class TestDepends(object):
 ===
 depends: index.html
 ===
-{% set ind = 'index.html' %}
-{% refer to ind as index %}
+
 """
         inc = File(TEST_SITE.child('content/inc.md'))
         inc.write(text)
diff --git a/setup.py b/setup.py
index c37b337..9318f2e 100644
--- a/setup.py
+++ b/setup.py
@@ -13,8 +13,18 @@ import sys
 
 PROJECT = 'hyde'
 
+try:
+    import markdown
+except:
+    markdown = False
+
 try:
     long_description = open('README.markdown', 'rt').read()
+    if markdown:
+        long_description = markdown.markdown(long_description)
+        import re
+        long_description = re.sub('(.*)', '   \\1', long_description)
+        long_description ='.. raw:: html\n\n' + long_description
 except IOError:
     long_description = ''