Refer developers to the vagrant vm and remove out of date documentation.

CONTRIBUTING.md

-## Contribute to GitLab 
+## Contribute to GitLab
 
 If you want to contribute to GitLab, follow this process:
 
@@ -7,24 +7,20 @@ If you want to contribute to GitLab, follow this process:
 3. Code
 4. Create a pull request
 
-We will only accept pull requests if: 
+We will only accept pull requests if:
 
 * Your code has proper tests and all tests pass
-* Your code can be merged w/o problems 
+* Your code can be merged w/o problems
 * It won't break existing functionality
 * It's quality code
 * We like it :)
 
-## [You may need a developer VM](https://github.com/gitlabhq/developer-vm)
+For examples of feedback on pull requests please look at the [closed pull requests](https://github.com/gitlabhq/gitlabhq/pulls?direction=desc&page=1&sort=created&state=closed).
 
-## Running tests
-
-To run the specs for GitLab, you need to run seeds for test db.
+## Installation
 
-    cd gitlabhq
-    rake db:seed_fu RAILS_ENV=test
+Install the Gitlab development in a virtual machine with the [Gitlab Vagrant virtual machine](https://github.com/gitlabhq/gitlab-vagrant-vm). Installing it in a virtual machine makes it much easier to set up all the dependencies for integration testing.
 
-Then you can run the test suite with rake:
-
-    rake gitlab:test
+## Running tests
 
+For more information on running the tests please read the [development tips](https://github.com/gitlabhq/gitlabhq/blob/master/doc/development.md)

doc/development.md

-## Development tips: 
+## Development tips:
 
-### Start application in development mode
 
-#### 1. Via foreman 
+### Installation
 
-    bundle exec foreman -p 3000
+Install the Gitlab development in a virtual machine with the [Gitlab Vagrant virtual machine](https://github.com/gitlabhq/gitlab-vagrant-vm). Installing it in a virtual machine makes it much easier to set up all the dependencies for integration testing.
 
-#### 2. Via gitlab cli
 
-    ./gitlab start
+### Start application in development mode
 
-#### 3. Manually
+#### 1. Via gitlab cli
 
-   bundle exec rails s
-   bundle exec rake environment resque:work QUEUE=* VVERBOSE=1
+    ./gitlab start
 
+#### 2. Manually
 
-### Run tests: 
- 
-#### 1. Packages
+    bundle exec rails s
+    bundle exec rake environment resque:work QUEUE=* VVERBOSE=1
 
-    # ubuntu
-    sudo apt-get install libqt4-dev libqtwebkit-dev
-    sudo apt-get install xvfb
-   
-    # Mac 
-    brew install qt
-    brew install xvfb
 
-#### 2. DB & seeds
+### Test DB seutup & seed
 
     bundle exec rake db:setup RAILS_ENV=test
     bundle exec rake db:seed_fu RAILS_ENV=test
 
-###  3. Run Tests
+
+###  Run the Tests
 
     # All in one
     bundle exec rake gitlab:test
-    
-    # Rspec 
+
+    # Rspec
     bundle exec rake spec
-    
+
     # Spinach
     bundle exec rake spinach