diff --git a/README b/README
index 2c8f61d9..18c6061a 100644
--- a/README
+++ b/README
@@ -1,6 +1,6 @@
 
 	GNU nano - an enhanced clone of the Pico text editor.
-                                      
+
 Overview
 
      The nano project was started because of a few "problems" with the
@@ -53,11 +53,10 @@ Mailing List and Bug Reports
 
 Current Status
 
-	GNU nano has finally reached its first stable release (1.0).
-	The development tree will fork soon and it will be called 1.1.x,
-	in the Linux kernel naming style.  Many thanks to all of our
-	bug reporters and contributors of code to get nano where it is
-	today.
+	This is the 1.1 or unstable branch of nano.  New features
+	will be added and things will be changed around and basically
+	stabiliity is not guaranteed.  If this is not what you're
+	interested in, please use the latest 1.0.x release of nano.
 
    Chris Allegretta (chrisa@asty.org)
 
diff --git a/configure b/configure
index b6a5e693..910239fb 100755
--- a/configure
+++ b/configure
@@ -724,7 +724,7 @@ fi
 
 PACKAGE=nano
 
-VERSION=1.0.1-cvs
+VERSION=1.1-cvs
 
 if test "`cd $srcdir && pwd`" != "`pwd`" && test -f $srcdir/config.status; then
   { echo "configure: error: source directory already configured; run "make distclean" there first" 1>&2; exit 1; }
diff --git a/configure.in b/configure.in
index ca84701a..70d32afe 100644
--- a/configure.in
+++ b/configure.in
@@ -1,7 +1,7 @@
 # $Id$
 dnl Process this file with autoconf to produce a configure script.
 AC_INIT(nano.c)
-AM_INIT_AUTOMAKE(nano, 1.0.1-cvs)
+AM_INIT_AUTOMAKE(nano, 1.1-cvs)
 AM_CONFIG_HEADER(config.h:config.h.in)
 ALL_LINGUAS="es de fr it id fi hu ca cs"