Any particular reason why most of the examples uses "sudo" while already logged in as root?
Additionally, either you have some strange prompts set up somewhere, or made a few typos when copying and pasting; a couple of places you appear to be logged in as a someuser@<...>, but with a hash-prompt(#) -- usually reserved for indicating root/super user access.
edit: Personally, I actually found the official documentation more helpful, even if it is very brief:
http://gitolite.com/gitolite/qi.html
In particular, it highlights that gitolite needs to run under a user, and needs a (your, the admin's) pubkey for setup -- but there's no need to generate a new one.
Behind the scenes, the pubkey used is added to the gitolite user's authorized_keys-file (and so is any other keys added, when users are added).