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The mythos surrounding the use of agile methods emphasizes improved customer satisfaction, developer morale, and end-product quality. While the difficulty of adopting these methods is mentioned, it is often glossed over in the discussion. This paper presents an in-depth case study of agile methods adoption in a software product development firm. The choice of the firm as the unit of analysis enables the identification of organizational, social and technological challenges with respect to using agile methods. Using a mix of interviews, observation and archival data, the evolution of agile adoption within the firm is reconstructed. The data analysis highlights the importance of the four areas of requirements management, scrum implementation, organizational learning, and verification & validation activities.