The README.txt file is out of date. The main text may require some updating as it hasn't been touched in a while, but the really obvious problems here are that it refers to "http://oozie.apache.org/docs/3.2.0-incubating/DG_QuickStart.html" (3.2.0-incubating version) and says "This version of Oozie was primarily tested against Hadoop 0.20.205.x. This will not work on earlier versions of Hadoop such as 0.20.x. and 0.21." which way off.