diff --git a/init/scripts/compose_gen.sh b/init/scripts/compose_gen.sh
index 403d06e..3c2327e 100755
--- a/init/scripts/compose_gen.sh
+++ b/init/scripts/compose_gen.sh
@@ -4,12 +4,12 @@ set -euo pipefail
 SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
 source "${SCRIPT_DIR}/functions.sh"
 resolve_paths
+require_env
 
-TEMPLATE_FILE="${INIT_DIR}/templates/compose.yaml.template"
+TEMPLATE_FILE="${INIT_DIR}/templates/main.yaml"
 OUTPUT_FILE="${ROOT_DIR}/compose.yaml"
 
 require_file "$TEMPLATE_FILE" "Compose template"
-require_env
 
 log_info "Configuring optional services..."
 
diff --git a/init/scripts/functions.sh b/init/scripts/functions.sh
index ad1bba7..5f42553 100644
--- a/init/scripts/functions.sh
+++ b/init/scripts/functions.sh
@@ -20,11 +20,24 @@ NC='\033[0m'
 # --- Path Resolution ---
 # Standardised for project structure: /init/scripts/xxx.sh
 # Sets: SCRIPT_DIR, INIT_DIR, ROOT_DIR
+# --- Path Resolution ---
 resolve_paths() {
     SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[1]}")" && pwd)"
-    INIT_DIR="$(dirname "$SCRIPT_DIR")"
-    ROOT_DIR="$(dirname "$INIT_DIR")"
-    export SCRIPT_DIR INIT_DIR ROOT_DIR
+
+    # Detect if we're in init/scripts/ or at project root
+    if [[ "$SCRIPT_DIR" == */init/scripts ]]; then
+        # Called from init/scripts/ (e.g., set_env.sh, config_gen.sh)
+        INIT_DIR="$(dirname "$SCRIPT_DIR")"
+        ROOT_DIR="$(dirname "$INIT_DIR")"
+    else
+        # Called from project root (e.g., setup.sh)
+        ROOT_DIR="$SCRIPT_DIR"
+        INIT_DIR="${ROOT_DIR}/init"
+    fi
+
+    ENV_FILE="${ROOT_DIR}/.env"
+    COMPOSE_FILE="${ROOT_DIR}/compose.yaml"
+    export SCRIPT_DIR INIT_DIR ROOT_DIR ENV_FILE COMPOSE_FILE
 }
 
 # --- Logging ---
@@ -68,6 +81,44 @@ generate_secret() {
     fi
 }
 
+# --- Interactive Prompts ---
+prompt_var() {
+    local var_name="$1"
+    local prompt_text="$2"
+    local default_val="$3"
+    local is_password="$4"
+    local base_domain="${5:-}"
+
+    local input
+    local final_value
+
+    echo -n "$prompt_text [Default: $default_val]: "
+    read -r input
+
+    if [[ -z "$input" ]]; then
+        if [[ "$is_password" == "yes" ]]; then
+            input=$(generate_secret 32)
+        else
+            input="$default_val"
+        fi
+    fi
+
+    # Append base domain if provided
+    if [[ -n "$base_domain" ]]; then
+        final_value="${input}.${base_domain}"
+    else
+        final_value="$input"
+    fi
+
+    # Escape special characters for .env file
+    final_value="${final_value//\\/\\\\}"
+    final_value="${final_value//\"/\\\"}"
+    final_value="${final_value//\$/\\\$}"
+    final_value="${final_value//\`/\\\`}"
+
+    echo "${var_name}=\"${final_value}\"" >> "$ENV_FILE"
+}
+
 # --- File Permissions ---
 fix_ownership() {
     local target="$1"
@@ -89,6 +140,14 @@ require_command() {
     fi
 }
 
+require_docker() {
+    require_command "docker"
+    if ! docker compose version &> /dev/null; then
+        log_error "Docker Compose plugin not found. Install it and retry."
+        exit 1
+    fi
+}
+
 require_file() {
     local file="$1"
     local description="${2:-File}"
@@ -99,17 +158,21 @@ require_file() {
 }
 
 require_env() {
-    local file="${ROOT_DIR}/.env"
+    local file="${ENV_FILE:-${ROOT_DIR}/.env}"
+
     if [[ ! -f "$file" ]]; then
-        log_error ".env file not found. Run set_env.sh first."
+        log_error ".env file not found at ${file}. Run set_env.sh first."
         exit 1
     fi
-    source "$file"
-}
 
-require_docker() {
-    require_command "docker"
-    require_command "docker compose"
+    # Source the file
+    source "$file"
+
+    # Verify critical variables exist
+    if [[ -z "${DOMAIN:-}" ]]; then
+        log_error "DOMAIN variable missing in .env. Re-run set_env.sh."
+        exit 1
+    fi
 }
 
 # --- Volume Path Resolution ---