Have you tried just typing the command in from scratch, or are you pasting them into putty as copied from the How-to page? It really looks like there are non-printing characters screwing the pooch here...those stray "the" and "The" errors are the type you usually see when lines are terminating incorrectly.
Just for giggles, can you try renaming the create-mrtg to create-mrtg1, then running:
tr -d '\r' < create-mrtg1 > create-mrtg
chmod 755 create-mrtg
./create-mrtg
I'm not sure pico strips everything pasted in, but my experience with vi has always worked.
Also, is the device you are trying to monitor already known to be responding to snmp requests? If so, is the community name already set to 'public' or is it something else? What is the device? If you are trying to monitor another Linux box, is the snmpd.conf on that system correctly constructed?
Sorry if these questions seem too basic --- it's hard to tell exactly where you are in experience. I wouldn't be surprised if you have more than me

Good luck,
Dan