You need to specify the RPC port. Never run P2Pool or bitcoind as root (sudo). Try this and report back if it's working:
~/p2pool/run_p2pool.py --net litecoin --bitcoind-rpc-port 3333 --bitcoind-p2p-port 9333 UNIQUE-USERNAME UNIQUE-PASSWORD
Don't forget to install scrypt for P2Pool.
cd ~/p2pool/litecoin_scrypt
sudo python setup.py install