diff --git a/agentstack/frameworks/agent_protocol.py b/agentstack/frameworks/agent_protocol.py
index bbba7f5..8e589c4 100644
--- a/agentstack/frameworks/agent_protocol.py
+++ b/agentstack/frameworks/agent_protocol.py
@@ -60,24 +60,40 @@ def validate(self) -> None:
                         elif target.id == 'tools':
                             has_tools = True
             elif isinstance(node, ast.FunctionDef):
-                if hasattr(node, 'decorator_list'):
-                    for decorator in node.decorator_list:
-                        # Handle both simple decorators and attribute decorators
-                        if isinstance(decorator, ast.Name) and decorator.id == 'on_task':
-                            has_task_handler = True
-                        elif isinstance(decorator, ast.Attribute):
-                            if (isinstance(decorator.value, ast.Name) and
-                                decorator.value.id == 'agent_protocol' and
-                                decorator.attr == 'on_task'):
-                                has_task_handler = True
-                        # Similar check for on_step decorator
-                        elif isinstance(decorator, ast.Name) and decorator.id == 'on_step':
-                            has_step_handler = True
-                        elif isinstance(decorator, ast.Attribute):
-                            if (isinstance(decorator.value, ast.Name) and
-                                decorator.value.id == 'agent_protocol' and
-                                decorator.attr == 'on_step'):
-                                has_step_handler = True
+                for decorator in node.decorator_list:
+                    # Handle all possible decorator patterns
+                    decorator_str = ''
+                    if isinstance(decorator, ast.Name):
+                        decorator_str = decorator.id
+                    elif isinstance(decorator, ast.Attribute):
+                        # Build full decorator path (e.g., agent_protocol.on_task)
+                        parts = []
+                        current = decorator
+                        while isinstance(current, ast.Attribute):
+                            parts.append(current.attr)
+                            current = current.value
+                        if isinstance(current, ast.Name):
+                            parts.append(current.id)
+                        decorator_str = '.'.join(reversed(parts))
+                    elif isinstance(decorator, ast.Call):
+                        # Handle decorator calls (e.g., @decorator())
+                        if isinstance(decorator.func, ast.Attribute):
+                            parts = []
+                            current = decorator.func
+                            while isinstance(current, ast.Attribute):
+                                parts.append(current.attr)
+                                current = current.value
+                            if isinstance(current, ast.Name):
+                                parts.append(current.id)
+                            decorator_str = '.'.join(reversed(parts))
+                        elif isinstance(decorator.func, ast.Name):
+                            decorator_str = decorator.func.id
+
+                    # Check for task and step handlers
+                    if 'on_task' in decorator_str:
+                        has_task_handler = True
+                    elif 'on_step' in decorator_str:
+                        has_step_handler = True
 
         if not has_app:
             raise ValidationError(f"FastAPI app not found in {self.path}")
diff --git a/agentstack/generation/project_generation.py b/agentstack/generation/project_generation.py
index 0600325..05d9eeb 100644
--- a/agentstack/generation/project_generation.py
+++ b/agentstack/generation/project_generation.py
@@ -23,18 +23,31 @@ def generate_project(project_dir: Path, framework: str, project_name: str, proje
         project_name: Human-readable name of the project
         project_slug: URL-friendly slug for the project
     """
-    template_dir = get_package_path() / 'templates' / framework
+    # Get absolute path to template directory using package path
+    package_path = get_package_path()
+    template_dir = package_path / 'templates' / framework
 
+    # Validate template directory and cookiecutter.json existence
     if not template_dir.exists():
-        raise ValidationError(f"Template directory for framework '{framework}' not found")
+        raise ValidationError(
+            f"Template directory for framework '{framework}' not found at {template_dir}. "
+            f"Package path: {package_path}"
+        )
+
+    cookiecutter_json = template_dir / 'cookiecutter.json'
+    if not cookiecutter_json.exists():
+        raise ValidationError(
+            f"cookiecutter.json not found in template directory at {cookiecutter_json}. "
+            f"Directory contents: {list(template_dir.iterdir())}"
+        )
 
     # Create project directory if it doesn't exist
     os.makedirs(project_dir, exist_ok=True)
 
-    # Generate project using cookiecutter
+    # Generate project using cookiecutter with absolute path
     cookiecutter(
-        str(template_dir),
-        output_dir=str(project_dir.parent),
+        str(template_dir.absolute()),
+        output_dir=str(project_dir.parent.absolute()),
         no_input=True,
         extra_context={
             'project_metadata': {
@@ -48,5 +61,11 @@ def generate_project(project_dir: Path, framework: str, project_name: str, proje
     nested_dir = project_dir.parent / project_slug
     if nested_dir.exists() and nested_dir != project_dir:
         for item in nested_dir.iterdir():
-            shutil.move(str(item), str(project_dir / item.name))
+            target_path = project_dir / item.name
+            if target_path.exists():
+                if target_path.is_dir():
+                    shutil.rmtree(target_path)
+                else:
+                    target_path.unlink()
+            shutil.move(str(item), str(target_path))
         nested_dir.rmdir()
diff --git a/pyproject.toml b/pyproject.toml
index 69f3c30..a68b0ab 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,5 +1,5 @@
 [build-system]
-requires = ["setuptools", "wheel"]
+requires = ["setuptools>=61.0.0", "wheel"]
 build-backend = "setuptools.build_meta"
 
 [project]