diff --git a/AGENTS.md b/AGENTS.md
index 6f32eff..2c183da 100644
--- a/AGENTS.md
+++ b/AGENTS.md
@@ -2,9 +2,10 @@
 
 ## Current Project Status
 
-**Last Updated**: 2024-01-13
-**Status**: 🔄 BUILD IN PROGRESS
-**Phase**: Step 2/5 (Configuring System)
+**Last Updated**: 2025-01-20
+**Status**: ⚠️ BUILD IN PROGRESS
+**Phase**: Step 4/5 (Creating Disk Images) - Failed at partitioning (sfdisk missing)
+**Current Attempt**: Using football-dev container with all tools
 
 ---
 
@@ -19,12 +20,12 @@ The Football Secure Access System is a minimal, hardened Debian 13 (trixie) syst
 | Configuration Files | ✅ COMPLETE | 100% validated |
 | Shell Scripts | ✅ COMPLETE | 100% validated |
 | Build Scripts | ✅ COMPLETE | Multiple versions available |
-| Docker Build | 🔄 IN PROGRESS | final-simple-build.sh running |
-| Debian Bootstrap | ✅ COMPLETE | build-tmp/test-chroot/ (83 packages) |
-| System Configuration | 🔄 RUNNING | Step 2/5 |
-| Package Installation | ⏳ PENDING | Next step |
-| Disk Images | ⏳ PENDING | Step 4/5 |
-| VM Boot Test | ⏳ PENDING | Step 5/5 |
+| Docker Build | 🔄 PARTIAL | final-simple-build.sh executed, failed at step 4 |
+| Debian Bootstrap | ✅ COMPLETE | build-tmp/chroot/ (83 packages) |
+| System Configuration | ✅ COMPLETE | overlay files copied, APT configured |
+| Package Installation | ✅ COMPLETE | Packages installed in chroot |
+| Disk Images | ⚠️ INCOMPLETE | football-physical.img created, QCOW2 conversion failed |
+| VM Boot Test | ⏳ PENDING | Awaiting valid disk images |
 
 ---
 
@@ -282,8 +283,9 @@ Multiple build approaches available:
 - Direct debootstrap execution
 - Step-by-step build with clear logging
 
-**Status**: 🔄 RUNNING (Step 2/5)
+**Status**: ⚠️ PARTIAL - Failed at Step 4 (Disk Images)
 **Usage**: `./final-simple-build.sh`
+**Issue**: Missing `sfdisk` command in container
 
 **Build Steps**:
 
@@ -294,10 +296,31 @@ Multiple build approaches available:
    - 83 packages installed
    - Location: `build-tmp/chroot/`
 
-2. 🔄 **Configure System** (IN PROGRESS)
+2. ✅ **Configure System** (COMPLETE)
    - Configure APT sources
    - Copy overlay files
    - Apply all security configurations
+
+3. ✅ **Install Packages** (COMPLETE)
+   - Install additional packages in chroot
+   - Linux kernel (linux-image-amd64) - version 6.12.63+deb13-amd64 installed
+   - System components (systemd, etc.)
+   - Security tools (AIDE, auditd)
+   - Network tools (iproute2, iputils-ping)
+   - WireGuard (client)
+   - GRUB (bootloader)
+   - Evidence: build-tmp/chroot/boot/ contains initrd.img and vmlinuz
+
+4. ❌ **Create Disk Images** (FAILED)
+   - Created 8GB raw image: output/football-physical.img
+   - Attempted partitioning with sfdisk
+   - ERROR: `sfdisk: command not found`
+   - Root cause: Docker container missing partitioning tools
+   - Fix in progress: Using football-dev container with all tools
+
+5. ⏸️ **Boot VM and Test** (BLOCKED)
+   - Cannot proceed until disk images are complete
+   - Awaiting Step 4 completion
    - WireGuard template configuration
 
 3. ⏳ **Install Packages** (PENDING)
@@ -329,12 +352,14 @@ Multiple build approaches available:
 
 ## Current Build Status
 
-### Running Process
+### Last Build Attempt
 
 **Script**: `final-simple-build.sh`
-**Started**: 2024-01-13 ~19:30 UTC
-**Current Status**: Step 2 (Configuring System)
-**Process**: Running in Docker container
+**Started**: 2025-01-13 (based on log timestamps)
+**Failed at**: Step 4 (Disk Image Creation)
+**Error**: `sfdisk: command not found`
+**Root Cause**: Docker container missing partitioning tools (fdisk, sfdisk)
+**Fix**: Created football-dev container with all build tools
 
 ### Completed Steps
 
@@ -356,6 +381,30 @@ docker run --rm \
 - 83 packages installed
 - Base system operational
 - Logs show: "Base system installed successfully"
+- Created: 2025-01-13 19:16 UTC
+
+---
+
+#### Step 2: System Configuration ✅ COMPLETE
+
+**Evidence**:
+- APT sources configured (build-tmp/chroot/etc/apt/sources.list)
+- Overlay files copied to chroot
+- Security configurations applied
+- WireGuard template in place
+
+---
+
+#### Step 3: Package Installation ✅ COMPLETE
+
+**Evidence**:
+- Kernel installed: linux-image-amd64 (6.12.63+deb13-amd64)
+- GRUB packages installed
+- Security tools installed (AIDE, auditd)
+- Network tools installed
+- WireGuard installed
+- Boot files present: initrd.img, vmlinuz
+- System fully configured in chroot
 
 **Files Created**:
 ```