PGBouncer help (how to get it working)

I had pgbouncer working somehow, but we have switched servers recently
and now I cannot for the life of me figure out again how to set it up.

Online guides say things like "create a user ID". Well, where? Inside
PG the database? Or in my CentOS system?

Here's my "/etc/pgbouncer.ini":

[databases]
* = port = 5432

[pgbouncer]
listen_port = 6543
listen_addr = 127.0.0.1
auth_type = trust
auth_file = /var/lib/pgsql/pgbouncer.txt
logfile = pgbouncer.log
pidfile = pgbouncer.pid
admin_users = postgres,MYSITE_pgbouncer
pool_mode = transaction
server_reset_query = DISCARD ALL;
server_check_query = select 1
server_check_delay = 10
max_client_conn = 1000
default_pool_size = 20
log_connections = 0
log_disconnections = 0
log_pooler_errors = 1

And here's my authfile, "/var/lib/pgsql/pgbouncer.txt" --

"MYSITE_pgbouncer" ""

Is there something else I need to do? What steps am I missing? When I
start pgbouncer at the command line, I see this error:

WARNING: password file "/root/.pgpass" has group or world access;
permissions should be u=rw (0600) or less
psql: ERROR: No such user: MYSITE_pgbouncer

Thanks for any tips!