I've set up Gitosis on a remote Ubuntu box which I will refer to as linuxserver as my host in the following commands. I'm also connecting from a Windows box using Cygwin.
I followed the instructions according to: http://scie.nti.st/2007/11/14/hosting-git-repositories-the-easy-and-secure-way
I had no problems up until I needed to clone the gitosis-admin repository to my local machine
git clone git@linuxserver:gitosis-admin.git
When I do this, the command executes, but hangs there displaying nothing until I ctrl-c to get back to a command prompt. No messages are displayed at all.
I'm pretty sure I have my ssh keys set up properly, because logging in using "ssh linuxserver" into my regular account works perfectly without asking for a password.
Edit: Over the weekend I set up a near identical Ubuntu box at home, and had no problem setting up Gitosis. The only difference was that I was connecting from OSX instead of Cygwin.
Edit: I've also discovered that when using the Bash Shell provided with "Git Extensions", I have no problems, so the issue definitely seems to be some kind of Cygwin conflict.
Edit: Just an update, but about a month after posting this question, I switched to Mercurial, and found that I prefer it much more than git. Thanks for the suggestions, but I don't plan on going back to git to try any of them out.
I'd also recommend setting the debug option in the conf.
[gitosis]
loglevel = DEBUG