Setting up Ruby, Rails, Git and Redmine on Dreamhost

The task is to have:
– Redmine installation on redmine.mydomain.com
– Several Git repositories on git.mydomain.com with different access rights to each one

This proved to be a non-trivial task. There is a number of tutorials on the net, but none of them described the full solution. So after getting it all to work, I decided to share all the tips and tricks. Feel free to comment, if you will find problems with the following set of instructions.
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