docs: update documentation for v0.2.0 tools release

README.md:
- Add Tatlock agent capabilities and tool descriptions
- Add requirements section (Ollama, SearXNG setup)
- Add configuration examples for external services
- Add tool usage examples and philosophy
- Add troubleshooting for Ollama and SearXNG
- Update test statistics

AGENTS.md:
- Refactor for LLM development focus
- Add PydanticAI tool registration pattern
- Add tool implementation guidelines
- Remove project status, focus on development instructions

IMPLEMENTATION_ROADMAP.md:
- Mark Phase 1 as "MOSTLY COMPLETE"
- Update detailed completion status
- Update current state summary

README.md

@@ -9,8 +9,9 @@ A privacy-first, offline-capable personal assistant system that coordinates spec
 - ✅ **Production-ready testing API** with OpenAI Responses API format
 - ✅ **Open WebUI integration** with reasoning bubbles (`<think>` tags)
 - ✅ **Conversation history** with auto-generated IDs and context management
-- ✅ **Comprehensive testing** - 95 tests, 78.95% coverage
-- 🚧 **PydanticAI integration** prepared for future real LLM connection
+- ✅ **Tatlock PydanticAI Agent** - Real LLM integration with Ollama + permanent tools
+- ✅ **Permanent Tools** - Calculator, date/time toolkit, web search (SearXNG)
+- ✅ **Comprehensive testing** - 131 tests, 81.78% coverage
 
 ## Features
 
@@ -36,20 +37,32 @@ A privacy-first, offline-capable personal assistant system that coordinates spec
 - **Parameter Validation**: Temperature (0.0-2.0), reasoning effort levels, max tokens, stop sequences
 - **Real-time Enforcement**: Stop sequence detection and max token limits during streaming
 
-### Testing Models
+### Available Models
 
 - **lorem-tester**: Full-featured mock agent with realistic behavior
   - Configurable reasoning effort levels
   - Random tool/function calls
   - Error triggers for testing (rate_limit, context_overflow)
 
-- **tatlock**: Placeholder for future PydanticAI agent
+- **Tatlock**: Real PydanticAI agent with butler personality
+  - **LLM Backend**: Ollama (mistral-nemo:latest)
+  - **Personality**: Witty British butler, research-oriented
+  - **Permanent Tools**:
+    - **Calculator**: Safe mathematical expression evaluation (arithmetic, algebra, trigonometry, logarithms)
+    - **Date/Time Toolkit**: Current time, relative dates ("1 week ago"), time differences
+    - **Web Search**: Privacy-preserving search via SearXNG
+  - **Capabilities**: Streaming, reasoning, tool calling
+  - **Phase**: Phase 1 - Basic Integration (full household coordination coming in future phases)
 
 ## Requirements
 
 - Python 3.12+ (Python 3.12.11 recommended)
-- No external dependencies for mock API
-- (Future: Network access for PydanticAI integration)
+- **Ollama** (for Tatlock agent): Running locally or network-accessible
+  - Download: https://ollama.ai/
+  - Model: `ollama pull mistral-nemo:latest`
+- **SearXNG** (for web search tool): Optional but recommended
+  - Docker: `docker run -d -p 8087:8080 searxng/searxng`
+  - Or use public instance (less private)
 
 ## Quick Start
 
@@ -164,6 +177,42 @@ curl http://localhost:8000/v1/responses \
 
 **Note**: Client must send full conversation history in `input` array (OpenAI compatible). Server optionally tracks via `metadata.conversation_id` for future features.
 
+### Using Tatlock with Tools
+
+Tatlock automatically uses his permanent tools when appropriate:
+
+```bash
+# Mathematical calculation
+curl http://localhost:8000/v1/chat/completions \
+  -H "Content-Type: application/json" \
+  -d '{
+    "model": "Tatlock",
+    "messages": [{"role": "user", "content": "What is sqrt(144) + 25?"}]
+  }'
+
+# Date/time queries
+curl http://localhost:8000/v1/chat/completions \
+  -H "Content-Type: application/json" \
+  -d '{
+    "model": "Tatlock",
+    "messages": [{"role": "user", "content": "What was the date 2 weeks ago?"}]
+  }'
+
+# Web search for current information
+curl http://localhost:8000/v1/chat/completions \
+  -H "Content-Type: application/json" \
+  -d '{
+    "model": "Tatlock",
+    "messages": [{"role": "user", "content": "Search for recent Python 3.12 features"}]
+  }'
+```
+
+**Tatlock's Tool Usage Philosophy:**
+- Uses calculator for ALL mathematics (even simple arithmetic)
+- Uses date/time tools instead of guessing dates
+- Searches for current/volatile information to verify facts
+- Maintains a researcher's mindset with tool-assisted verification
+
 ## Open WebUI Integration
 
 ### Connection
@@ -205,9 +254,14 @@ pytest
 # Run with coverage
 pytest --cov=src --cov-report=term-missing
 
-# Current: 95 tests, 78.95% coverage
+# Current: 131 tests, 81.78% coverage
 ```
 
+**Test Categories:**
+- Unit tests: Agent tools, streaming, schemas
+- Integration tests: Full API stack with real Ollama calls
+- End-to-end tests: Chat completions, responses API
+
 ## Deployment
 
 ### Production Server
@@ -234,15 +288,24 @@ Create a `.env` file for custom configuration:
 API_HOST=0.0.0.0
 API_PORT=8000
 
+# Ollama Configuration
+OLLAMA_HOST=http://localhost:11434
+OLLAMA_DEFAULT_MODEL=mistral-nemo:latest
+OLLAMA_TIMEOUT=120
+
+# SearXNG Configuration (for web search tool)
+SEARXNG_HOST=http://localhost:8087
+SEARXNG_TIMEOUT=30
+
 # Logging
 LOG_LEVEL=INFO
 
 # CORS (default: allow all)
 CORS_ORIGINS=["*"]
-
-# Future: LLM configuration
 ```
 
+See `.env.example` for full configuration options.
+
 ## Troubleshooting
 
 ### Streaming not working
@@ -260,19 +323,37 @@ CORS_ORIGINS=["*"]
 - Or manually enable in Responses API: `"reasoning": {"effort": "medium", "summary": "auto"}`
 - Check Open WebUI version supports `<think>` tags
 
+### Tatlock agent errors
+- Verify Ollama is running: `curl http://localhost:11434/api/tags`
+- Check model is downloaded: `ollama list`
+- Review environment variables: `OLLAMA_HOST`, `OLLAMA_DEFAULT_MODEL`
+- Check logs: `tail -f logs/server.log`
+
+### Web search not working
+- Verify SearXNG is running: `curl http://localhost:8087/`
+- Check `SEARXNG_HOST` environment variable
+- SearXNG is optional - Tatlock will note if search is unavailable
+
 ## Project Structure
 
 ```
 tatlock/
 ├── src/
 │   ├── agents/          # Agent interface and implementations
+│   │   ├── base.py      # AgentInterface abstract class
+│   │   ├── lorem_tester.py  # Mock agent for testing
+│   │   ├── tatlock.py   # Real PydanticAI butler agent
+│   │   ├── tools.py     # Permanent tools (calculator, date/time, search)
+│   │   └── registry.py  # Model registry
 │   ├── responses/       # Responses API (primary endpoint)
 │   ├── chat/            # Chat Completions wrapper
 │   ├── models/          # Models listing
 │   ├── core/            # Shared utilities and config
 │   └── main.py          # Application entry point
-├── tests/               # Comprehensive test suite
+├── tests/               # Comprehensive test suite (131 tests)
 ├── AGENTS.md            # LLM agent development guidelines
+├── PHILOSOPHY.md        # System vision and architecture
+├── IMPLEMENTATION_ROADMAP.md  # Development phases
 ├── CHANGELOG.md         # Version history
 └── README.md            # This file
 ```
@@ -307,7 +388,7 @@ For LLM agent development guidelines and architectural decisions, see [AGENTS.md
 
 ## Version
 
-Current version: **0.1.1** - Basic setup complete
+Current version: **0.2.0** - PydanticAI Integration with Permanent Tools
 
 ---