Initial project setup: monorepo structure with frontend and backend

- Set up pnpm workspace with frontend (React + Vite) and backend (Express + Prisma)
- Configure TypeScript, ESLint, and Prettier
- Add Prisma schema for database models (User, Course, Lesson, Progress, etc.)
- Create basic frontend structure with Tailwind CSS and shadcn/ui
- Add environment configuration files
- Update README with project overview and setup instructions
- Complete Phase 0: Project initialization

README.md

@@ -75,7 +75,7 @@ znakovni/
 ### Prerequisites
 
 - **Node.js 20 LTS** or higher
-- **pnpm** package manager
+- **pnpm** package manager (install with `npm install -g pnpm`)
 - **MySQL 8.0+** database server
 - **Git** for version control
 
@@ -92,26 +92,40 @@ znakovni/
    pnpm install
    ```
 
-3. **Configure environment variables**
+   When prompted to approve build scripts, select:
+   - `@prisma/client`
+   - `@prisma/engines`
+   - `bcrypt`
+   - `esbuild`
+   - `prisma`
+
+3. **Generate Prisma Client**
+   ```bash
+   cd packages/backend
+   npx prisma generate
+   cd ../..
+   ```
+
+4. **Configure environment variables**
    ```bash
    # Backend
    cp packages/backend/.env.example packages/backend/.env
-   # Edit packages/backend/.env with your database credentials and OAuth keys
-   
-   # Frontend
+   # Edit packages/backend/.env with your database credentials
+   # Update DATABASE_URL with your MySQL connection string
+
+   # Frontend (optional)
    cp packages/frontend/.env.example packages/frontend/.env
-   # Edit packages/frontend/.env with your API URL
    ```
 
-4. **Set up the database**
+5. **Set up the database**
    ```bash
    cd packages/backend
-   npx prisma migrate dev
+   npx prisma migrate dev --name init
    npx prisma db seed
    cd ../..
    ```
 
-5. **Start development servers**
+6. **Start development servers**
    ```bash
    pnpm dev
    ```
@@ -120,6 +134,53 @@ znakovni/
    - Frontend: http://localhost:5173
    - Backend: http://localhost:3000
 
+### Verify Installation
+
+Test the backend:
+```bash
+curl http://localhost:3000/api/health
+```
+
+You should see:
+```json
+{"status":"ok","message":"Backend is running!","timestamp":"..."}
+```
+
+Open http://localhost:5173 in your browser to see the frontend.
+
+## 📋 Development Status
+
+### ✅ Phase 0: Project Setup (COMPLETED)
+
+**Deliverables:**
+- ✅ Monorepo structure with pnpm workspaces
+- ✅ Frontend (Vite + React + TypeScript) initialized
+- ✅ Backend (Express + TypeScript) initialized
+- ✅ Prisma with MySQL configured
+- ✅ Tailwind CSS and shadcn/ui setup
+- ✅ ESLint, Prettier, and TypeScript configs
+- ✅ Environment variable templates
+- ✅ Git repository and .gitignore
+- ✅ Project compiles and runs successfully
+- ✅ Database connection configured
+- ✅ Basic "Hello World" on both ends
+
+**What's Working:**
+- Frontend builds and runs on http://localhost:5173
+- Backend API runs on http://localhost:3000
+- Health check endpoint: `GET /api/health`
+- TypeScript compilation with strict mode
+- Hot reload for development
+
+### 🚧 Next Phase: Phase 1 - Core Infrastructure
+
+**Upcoming Tasks:**
+- Implement authentication (Passport.js with local, Google, Microsoft OAuth)
+- Create user management system
+- Build layout components (Sidebar, Header)
+- Set up session management
+- Implement CORS and security headers
+
 ## 📚 Key Features
 
 ### 1. Dictionary (Riječi)