diff --git a/Gemfile b/Gemfile
index d7b95f7d..01b14cc0 100644
--- a/Gemfile
+++ b/Gemfile
@@ -15,7 +15,6 @@ gem "six"
 gem "therubyracer"
 gem "faker"
 gem "seed-fu", "~> 2.1.0"
-gem "inifile"
 gem "pygments.rb", "0.2.3"
 gem "thin"
 gem "git"
diff --git a/Gemfile.lock b/Gemfile.lock
index dc27b921..54b1e25d 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -112,7 +112,6 @@ GEM
     hashery (1.4.0)
     hike (1.2.1)
     i18n (0.6.0)
-    inifile (0.4.1)
     jquery-rails (1.0.17)
       railties (~> 3.0)
       thor (~> 0.14)
@@ -271,7 +270,6 @@ DEPENDENCIES
   gitolite!
   grit!
   haml-rails
-  inifile
   jquery-rails
   kaminari
   launchy
diff --git a/README.md b/README.md
index 8cbec9e3..6fb1cf42 100644
--- a/README.md
+++ b/README.md
@@ -32,13 +32,6 @@ cd gitlabhq/
 sudo pip install pygments
 sudo apt-get install python-dev
 
-# give your user access to remove git repo
-# Ex.
-#   If you are going to use user 'gitlabhq' for rails server
-#   gitlabhq ALL = (git) NOPASSWD: /bin/rm" | sudo tee -a /etc/sudoers
-#
-echo "USERNAME ALL = (git) NOPASSWD: /bin/rm" | sudo tee -a /etc/sudoers
-
 sudo gem install bundler
 
 bundle install --without development test
@@ -107,7 +100,7 @@ gl-setup ~/rails.pub
 ## Install ruby 1.9.2
 
 ```bash
-sudo aptitude install git-core curl gcc checkinstall libxml2-dev libxslt-dev sqlite3 libsqlite3-dev libcurl4-openssl-dev libreadline5-dev libc6-dev libssl-dev libmysql++-dev make build-essential zlib1g-dev
+sudo aptitude install git-core openssh-server curl gcc checkinstall libxml2-dev libxslt-dev sqlite3 libsqlite3-dev libcurl4-openssl-dev libreadline5-dev libc6-dev libssl-dev libmysql++-dev make build-essential zlib1g-dev
 
 wget http://ftp.ruby-lang.org/pub/ruby/1.9/ruby-1.9.2-p290.tar.gz
 
diff --git a/install/README b/install/README
new file mode 100644
index 00000000..12aa8f40
--- /dev/null
+++ b/install/README
@@ -0,0 +1,11 @@
+Ubuntu installation
+
+1. install git & generate ssh key
+2. install ruby 
+  ./ubuntu_ruby.sh
+3. install git user & gitolite with umask 0007
+  ./ubuntu_gitolite.sh
+4. logout
+5. install gitlabhq
+  ./ubuntu_gitlab.sh
+6 start server
diff --git a/install/ubuntu_gitlab.sh b/install/ubuntu_gitlab.sh
new file mode 100755
index 00000000..43ed30aa
--- /dev/null
+++ b/install/ubuntu_gitlab.sh
@@ -0,0 +1,6 @@
+sudo pip install pygments
+sudo apt-get install python-dev
+sudo gem install bundler
+bundle install --without development test
+bundle exec rake db:setup RAILS_ENV=production
+bundle exec rake db:seed_fu RAILS_ENV=production
diff --git a/install/ubuntu_gitolite.sh b/install/ubuntu_gitolite.sh
new file mode 100755
index 00000000..f37ea8f8
--- /dev/null
+++ b/install/ubuntu_gitolite.sh
@@ -0,0 +1,29 @@
+sudo adduser \
+  --system \
+  --shell /bin/sh \
+  --gecos 'git version control' \
+  --group \
+  --disabled-password \
+  --home /home/git \
+  git
+
+
+PATH=/home/dzaporozhets/bin:$PATH
+
+# Add your user to git group
+sudo usermod -a -G git `eval whoami` 
+
+# copy your pub key to git home
+sudo cp ~/.ssh/id_rsa.pub /home/git/rails.pub
+
+# clone gitolite
+sudo -u git -H git clone git://github.com/gitlabhq/gitolite /home/git/gitolite
+
+# install gitolite
+sudo -u git -H /home/git/gitolite/src/gl-system-install
+
+
+# Setup (Dont forget to set umask as 0007!!)
+sudo -u git -H /home/git/bin/gl-setup /home/git/rails.pub
+
+echo "Done"
diff --git a/install/ubuntu_ruby.sh b/install/ubuntu_ruby.sh
new file mode 100755
index 00000000..18c42213
--- /dev/null
+++ b/install/ubuntu_ruby.sh
@@ -0,0 +1,11 @@
+# install all packages
+sudo apt-get install git-core openssh-server curl gcc checkinstall libxml2-dev libxslt-dev sqlite3 libsqlite3-dev libcurl4-openssl-dev libreadline5-dev libc6-dev libssl-dev libmysql++-dev make build-essential zlib1g-dev
+
+# get ruby 1.9.2
+wget http://ftp.ruby-lang.org/pub/ruby/1.9/ruby-1.9.2-p290.tar.gz
+tar xfvz ruby-1.9.2-p290.tar.gz
+cd ruby-1.9.2-p290
+./configure
+make
+sudo make install
+echo "Done"