Its working fine here http://minar.cc:9327 for LTC.
Just one thing i dont understand, now how is the difficulty of the shares decided? I mean, if i dont set +xxx on my user, what is the difficulty i should get from p2pool?
The +xxx difficulty is just the difficulty of the shares which p2pool users to report statistics. You can set that to whatever you want, but it should be low enough to get good statistics on the health of your system.
the /xxx difficulty is the difficulty of the shares that you get credit for payouts with, and is limited to 10x the default difficulty.
The default payout difficulty will be such that your private p2pool "network" will find one share every 10 seconds.