Mac OS X Terminal: -bash: $: command not found

Mac OS X Terminal: -bash: $: command not found

While trying to install pagekite on OS X Snow Leopard using the following
command:
$ pagekite.py --signup
I got:
-bash: $: command not found
I am a noob with the terminal but after reading a bit I understand that it
is a problem with my PATH
echo $PATH
/usr/bin:/bin:/usr/sbin:/sbin:/usr/local/bin:/usr/local/MacGPG2/bin:/usr/X11/bin
Can anybody spot the problem? If you ask me -without knowing a thing about
it- I suspect the MacGPG2 (MacGnuPrivcacyGuard2) is out of place?
Thanks for your time!