it's just a TEXT file --

i'm assuming you mean README not FEADME --

just creat a text file and name it with your KITNAME_README.txt and add it to your zip files.

that is it -- iclude your name and contact information and how you will allow the kit to be used in things such as submissions. If someone submits to a magazine using your kit is that ok --

how would you like credit to be given?

and any pertinant information you feel necessary.