diff --git a/.gitignore b/.gitignore
index 7cce00e..9917d60 100644
--- a/.gitignore
+++ b/.gitignore
@@ -39,4 +39,6 @@ media/
 
 # OS
 .DS_Store
-Thumbs.db
\ No newline at end of file
+Thumbs.db
+
+output/
\ No newline at end of file
diff --git a/anki_generator/card_generator.py b/anki_generator/card_generator.py
index d17d588..1a8b81a 100644
--- a/anki_generator/card_generator.py
+++ b/anki_generator/card_generator.py
@@ -1,5 +1,6 @@
 import os
 import random
+import logging
 import genanki
 from datetime import datetime
 from typing import List, Tuple, Optional
@@ -7,12 +8,21 @@ from .models import GermanWord, UnsplashImage
 from .clients.llm import AnthropicClient
 from .clients.unsplash import UnsplashClient
 
-class GermanDeckPackage(genanki.Package):
-    """Custom Package class to include media files"""
+logger = logging.getLogger(__name__)
+
+class GermanDeckPackage:
+    """Package class to create Anki deck with media files"""
     def __init__(self, deck, media_files):
-        super().__init__(deck)
+        self.deck = deck
         self.media_files = media_files
 
+    def write_to_file(self, file):
+        """Write deck to a file"""
+        package = genanki.Package([self.deck])
+        package.media_files = self.media_files
+        logger.info("Writing deck with media files: %s", self.media_files)
+        package.write_to_file(file)
+
 class CardGenerator:
     def __init__(self, llm_client: AnthropicClient, unsplash_client: UnsplashClient):
         self.llm_client = llm_client
@@ -46,7 +56,7 @@ class CardGenerator:
                         <div style="font-size: 24px;">{{German_Word}}</div>
                         <div style="font-size: 18px;">Part of speech: {{Part_of_Speech}}</div>
                         <div style="font-size: 14px;">Source: {{Source}}</div>
-                        {{#Image}}<div><img src="{{text:Image}}" style="max-width: 300px; max-height: 200px;"></div>{{/Image}}
+                        {{Image}}
                     ''',
                     'afmt': '''
                         {{FrontSide}}
@@ -79,29 +89,65 @@ class CardGenerator:
             '''
         )
 
+    def _load_processed_words(self) -> set:
+        """Load previously processed words from tracking file"""
+        processed_words = set()
+        tracking_file = os.path.join("output", "processed_words.txt")
+        if os.path.exists(tracking_file):
+            with open(tracking_file, 'r', encoding='utf-8') as f:
+                processed_words = set(line.strip() for line in f if line.strip())
+            logger.info("Found %d previously processed words", len(processed_words))
+        return processed_words
+
+    def _add_to_processed_words(self, word: str):
+        """Add a word to the tracking file"""
+        tracking_file = os.path.join("output", "processed_words.txt")
+        os.makedirs("output", exist_ok=True)
+        with open(tracking_file, 'a', encoding='utf-8') as f:
+            f.write(f"{word}\n")
+        logger.debug("Added %s to processed words", word)
+
     def create_deck(self, word_list: List[Tuple[str, str]], deck_name: str = "German Vocabulary") -> Tuple[genanki.Deck, List[str]]:
         """Create an Anki deck from a list of words"""
         deck_id = random.randrange(1 << 30, 1 << 31)
         deck = genanki.Deck(deck_id, deck_name)
         media_files = []
+        
+        # Load previously processed words
+        processed_words = self._load_processed_words()
 
         for word, source in word_list:
+            # Skip if word has been processed before
+            if word in processed_words:
+                logger.info("Skipping %s - already exists in previous deck", word)
+                continue
             try:
                 card_info_dict = self.llm_client.get_card_info(word, source)
                 card_info = GermanWord(**card_info_dict)
+
+                image_filename = f"{word.lower().replace(' ', '_')}.jpg"
                 
-                # Get image
-                image_filename = f"media/{word.lower().replace(' ', '_')}.jpg"
+                # Create output directory if it doesn't exist
+                output_dir = "output"
+                os.makedirs(output_dir, exist_ok=True)
+
+                media_dir = "media"
+                os.makedirs(media_dir, exist_ok=True)
+                
+                # Save image directly to media directory
+                image_path = os.path.join(media_dir, image_filename)
                 image = self.unsplash_client.get_image(
                     card_info.image_search_term,
-                    image_filename
+                    image_path
                 )
 
-                if image and image.local_path:
+                if image and image.local_path and os.path.exists(image.local_path):
+                    # Use the full path for the media file
                     media_files.append(image.local_path)
-                    image_filename = os.path.basename(image.local_path)
+                    logger.info("Added image: %s", image.local_path)
                 else:
-                    image_filename = ""
+                    image_path = ""
+                    logger.warning("No image for: %s", word)
 
                 # Create note
                 note = genanki.Note(
@@ -117,15 +163,17 @@ class CardGenerator:
                         card_info.sentence_translation,
                         card_info.usage_notes,
                         card_info.related_words,
-                        image_filename,
+                        f'<img src="{os.path.basename(image.local_path) if image and image.local_path else ""}" />',
                         image.photographer if image else "",
                         ' '.join(card_info.tags)
                     ]
                 )
                 deck.add_note(note)
-                print(f"Added card for: {word}")
+                # Track the word after successfully creating the note
+                self._add_to_processed_words(word)
+                logger.info("Added card for: %s", word)
 
             except Exception as e:
-                print(f"Error creating card for {word}: {str(e)}")
+                logger.error("Error creating card for %s: %s", word, str(e))
 
         return deck, media_files
diff --git a/anki_generator/clients/unsplash.py b/anki_generator/clients/unsplash.py
index 40e6a38..5e3985a 100644
--- a/anki_generator/clients/unsplash.py
+++ b/anki_generator/clients/unsplash.py
@@ -2,6 +2,7 @@ from typing import Optional
 import requests
 from PIL import Image
 from io import BytesIO
+import os
 
 from ..models import Settings, UnsplashImage
 from anki_generator.settings import get_settings, Settings
@@ -11,7 +12,7 @@ class UnsplashClient:
         self.settings = settings or get_settings()
         self.api_key = self.settings.unsplash_api_key.get_secret_value()
 
-    def get_image(self, search_term: str, save_path: str) -> Optional[UnsplashImage]:
+    def get_image(self, search_term: str, filename: str) -> Optional[UnsplashImage]:
         """Fetch and save an image from Unsplash"""
         url = "https://api.unsplash.com/search/photos"
         headers = {"Authorization": f"Client-ID {self.api_key}"}
@@ -37,15 +38,18 @@ class UnsplashClient:
             img_response = requests.get(image_url)
             img_response.raise_for_status()
 
+            # Create directory if it doesn't exist
+            os.makedirs(os.path.dirname(filename) or '.', exist_ok=True)
+
             # Process and save image
             img = Image.open(BytesIO(img_response.content))
             img.thumbnail((800, 600))
-            img.save(save_path, "JPEG", quality=85)
+            img.save(filename, "JPEG", quality=85)
 
             return UnsplashImage(
                 url=image_url,
                 photographer=photographer,
-                local_path=save_path
+                local_path=filename
             )
 
         except Exception as e:
diff --git a/anki_generator/main.py b/anki_generator/main.py
index 472068a..63df1a3 100644
--- a/anki_generator/main.py
+++ b/anki_generator/main.py
@@ -1,24 +1,29 @@
 import os
 import argparse
+import logging
 from datetime import datetime
-from typing import List, Tuple
+import shutil
+import glob
+from typing import List, Tuple, Optional
 from pathlib import Path
 
 from anki_generator.clients.llm import AnthropicClient
 from anki_generator.clients.unsplash import UnsplashClient
 from anki_generator.card_generator import CardGenerator, GermanDeckPackage
 
+logger = logging.getLogger(__name__)
+
 def read_word_list(file_path: str) -> List[Tuple[str, str]]:
     """Read word list from file"""
     words = []
-    print(f"Reading file: {file_path}")
+    logger.info("Reading file: %s", file_path)
     with open(file_path, 'r', encoding='utf-8') as f:
         for line in f:
-            print(f"Processing line: {line.strip()}")
+            logger.debug("Processing line: %s", line.strip())
             # Expected format: word,source
             word, source = line.strip().split(',', 1)
             words.append((word.strip(), source.strip()))
-            print(f"Added word: {word.strip()} with source: {source.strip()}")
+            logger.debug("Added word: %s with source: %s", word.strip(), source.strip())
     return words
 
 def main():
@@ -29,35 +34,41 @@ def main():
     
     args = parser.parse_args()
 
-    print("Loading program")
+    logger.info("Starting Anki card generation")
 
-    # Create media directory
-    os.makedirs('media', exist_ok=True)
+    try:
+        llm_client = AnthropicClient()
+        unsplash_client = UnsplashClient()
 
-    # Initialize clients
-    llm_client = AnthropicClient()
-    unsplash_client = UnsplashClient()
+        generator = CardGenerator(llm_client, unsplash_client)
 
-    # Initialize card generator
-    generator = CardGenerator(llm_client, unsplash_client)
+        words = read_word_list(args.input)
 
-    # Read word list
-    words = read_word_list(args.input)
+        deck, media_files = generator.create_deck(words, args.deck_name)
 
-    # Generate deck
-    deck, media_files = generator.create_deck(words, args.deck_name)
+        output_dir = "output"
+        os.makedirs(output_dir, exist_ok=True)
 
-    # Generate output filename if not provided
-    if not args.output:
-        timestamp = datetime.now().strftime("%Y%m%d_%H%M%S")
-        output_file = f"german_vocab_{timestamp}.apkg"
-    else:
-        output_file = args.output
+        if not args.output:
+            timestamp = datetime.now().strftime("%Y%m%d_%H%M%S")
+            output_file = os.path.join(output_dir, f"german_vocab_{timestamp}.apkg")
+        else:
+            output_file = os.path.join(output_dir, args.output)
 
-    # Save deck
-    package = GermanDeckPackage(deck, media_files)
-    package.write_to_file(output_file)
-    print(f"Deck saved as: {output_file}")
+        media_paths = []
+        for media_file in media_files:
+            media_path = os.path.join(output_dir, os.path.basename(media_file))
+            if os.path.exists(media_file) and media_file != media_path:
+                shutil.copy2(media_file, media_path)
+            media_paths.append(media_path)
+
+        package = GermanDeckPackage(deck, media_paths)
+        package.write_to_file(output_file)
+        logger.info("Deck and media files saved in: %s", output_dir)
+
+    except Exception as e:
+        logger.error("Error: %s", str(e))
+        raise
 
 if __name__ == "__main__":
     main()
diff --git a/anki_generator/settings.py b/anki_generator/settings.py
index be387a3..120b57d 100644
--- a/anki_generator/settings.py
+++ b/anki_generator/settings.py
@@ -1,8 +1,17 @@
+import logging
 from typing import Optional
 from functools import lru_cache
 from pydantic import SecretStr
 from pydantic_settings import BaseSettings, SettingsConfigDict
 
+def setup_logging():
+    """Configure logging for the application."""
+    logging.basicConfig(
+        level=logging.INFO,
+        format='%(asctime)s - %(name)s - %(levelname)s - %(message)s',
+        datefmt='%Y-%m-%d %H:%M:%S'
+    )
+
 class Settings(BaseSettings):
     """Application settings that are loaded from environment variables."""
     
@@ -44,4 +53,5 @@ def get_settings() -> Settings:
     Returns:
         Settings: Application settings instance
     """
-    return Settings()
\ No newline at end of file
+    setup_logging()
+    return Settings()
diff --git a/data/words.csv b/data/words.csv
index 4924e7f..65d905d 100644
--- a/data/words.csv
+++ b/data/words.csv
@@ -1,5 +1,3 @@
-Katze,Duolingo
-Hund,Book: German Made Simple
-Apfel,Language Exchange
-Brot,DW Learn German
-Wasser,Memrise
+Bauch,Babbel
+Kopf,Babbel
+Rücken,Babbel