LinuxQuestions.org - Git repo sharing with multiple users problem.

Hello, I'm struggling to setup Git on my server. Basically all I want is several users to be able to commit, one user to push the update and that's it. I avoided using gitosis or gitolite and I followed this tutorial.
So I created first user, generated ssh key, copied it to authorized_keys in /root/.ssh/ and made a repo. For this particular user everything is OK. The problem starts when I add the second user. I did the same procedure as for the first user. I initialized repo with --shared parameter, added both first and second user to the same "dev" group. Chgrp the repo folder to dev group recursively and chmod to "swX" for the group. When I try to clone the repo with second user I get:

Code:

fatal: 'sfilma.git' does not appear to be a git repository

fatal: The remote end hung up unexpectedly

Here's git config:

Code:

cat .git/config

[core]

        repositoryformatversion = 0

        filemode = true

        bare = false

        logallrefupdates = true

        sharedrepository = 1

[receive]

        denyNonFastforwards = true

I tried changing sharedrepository to "true" but that doesn't work either. I cannot understand why this doesn't work and what I did wrong. Any help please? Thanks!