Be more clear about limitations in different modes

Author: OpenHypervideo

README.md

@@ -6,17 +6,17 @@ Create, annotate, and remix interactive videos on the web.
 
 FrameTrail is an open-source platform for building non-linear, interactive video experiences. Add overlays, annotations, video links, and code snippets to any video — or create time-based presentations without video at all. All data is stored as portable JSON files with no database required.
 
-**No server required for viewing or editing.** FrameTrail runs entirely in the browser using the [File System Access API](https://developer.mozilla.org/en-US/docs/Web/API/File_System_Access_API) for local file editing, or with an Apache+PHP backend for multi-user collaboration. It also works in any browser — including Firefox and Safari — via an in-memory mode where edits can be exported as JSON.
+FrameTrail works in three modes with different capabilities. A PHP backend provides the full feature set: multi-user accounts, collaborative editing, file uploads, and optional media processing. In Chrome/Edge, the [File System Access API](https://developer.mozilla.org/en-US/docs/Web/API/File_System_Access_API) enables single-user local editing with file uploads, but without transcoding or user management. In any browser — including Firefox and Safari — an in-memory mode lets you view and edit contents and export changes as JSON.
 
 ---
 
 ## Features
 
 ### Three Ways to Run
 
-1. **Server mode** (Apache + PHP) — Full multi-user editing, file uploads, user management
-2. **Local folder mode** (Chrome/Edge) — Full editing without a server, using the File System Access API to read/write a local `_data` folder
-3. **In-memory mode** (all browsers) — Pass hypervideo data via init options; view and edit in-browser; export changes as JSON via Save As. Nothing persists past a page reload unless exported. Works in Firefox, Safari, and everywhere else.
+1. **Server mode** (Apache + PHP) — Multi-user accounts, collaborative editing, file uploads, optional media transcoding and thumbnail generation
+2. **Local folder mode** (Chrome/Edge) — Single-user editing saved directly to a local `_data` folder via the File System Access API; file uploads supported, no transcoding or user management
+3. **In-memory mode** (all browsers) — View and edit in-browser; export changes as JSON via Save As; no file uploads; requires content to be passed via init options. Works in Firefox, Safari, and everywhere else.
 
 ### Editing
 

docs/DEPLOYMENT.md

@@ -43,7 +43,7 @@ Then open `http://localhost:8080`. No Apache, no XAMPP needed if PHP is installe
 
 ### Option 2: Local Folder Mode (No Server)
 
-Full editing without a server. Uses the [File System Access API](https://developer.mozilla.org/en-US/docs/Web/API/File_System_Access_API) to read and write files directly on disk.
+Single-user editing without a server. Uses the [File System Access API](https://developer.mozilla.org/en-US/docs/Web/API/File_System_Access_API) to read and write files directly on disk. File uploads (images, video, audio) are supported, but server-side capabilities like media transcoding, thumbnail generation, and user management are not available.
 
 **Requirements:**
 - Chrome or Edge (the File System Access API is not supported in Firefox or Safari)
@@ -54,15 +54,16 @@ Full editing without a server. Uses the [File System Access API](https://develop
 2. Open `index.html` directly in Chrome or Edge
 3. FrameTrail detects the local environment and prompts you to select a `_data` folder
 4. Select an existing `_data` folder or create a new empty folder
-5. Full editing is available — all changes are saved directly to the selected folder
+5. Editing is available — all changes are saved directly to the selected folder
 
 **How it works:**
 
 The `StorageAdapterLocal` class uses the File System Access API (`showDirectoryPicker`, `FileSystemDirectoryHandle`, etc.) to read and write JSON files and uploaded media. The browser asks for permission the first time you access a folder, then remembers it for the session.
 
 **Limitations:**
 - Identity is name-only (a login dialog prompts for a display name before entering edit mode; no account or password required)
-- No PHP-based file processing (image optimization, video transcoding)
+- No media transcoding or thumbnail generation (no server-side processing)
+- No multi-user collaboration or shared resource library
 - Browser must support File System Access API (Chrome/Edge only)
 
 ### Option 3: In-Memory Mode (All Browsers)