Problems moving root install to its own directory using DreamHost

I guess I am having trouble with step 1, haha. I am not sure whether to create the “elsewhere” folder inside the root folder or outside of it, Also, I was under the impression that the only two files I was supposed to copy into the new “elsewhere” folder were the .htaccess and index.php file….but are you saying I need to copy the entire contents of my root folder into the “elsewhere” folder?

Currently, here are the steps I have completed, in response to your post above:
1. I changed my WordPress address in my General Settings to hhtp:whynaturally.com/elswhere, and left the Site address as http:whynaturally.com
2. I made a “whynaturally.com/elswhere” folder outside of my root folder, and copied the entire contents of my “whynaturally.com” folder into it.
3. I changed the index.php file inside my foot folder to read: require(‘./elsewhere/wp-blog-header.php’);
4. I tried accessing whynaturally.com/elsewhere/wp-admin AND plain old whynaturally.com and am still getting the following error message:

Warning: require(./elsewhere/wp-blog-header.php) [function.require]: failed to open stream: No such file or directory in /home/raceng/whynaturally.com/index.php on line 17
Fatal error: require() [function.require]: Failed opening required ‘./elsewhere/wp-blog-header.php’ (include_path=’.:/usr/local/lib/php:/usr/local/php5/lib/pear’) in /home/raceng/whynaturally.com/index.php on line 17

nagrajsuligavi: I did upload wp-content into my new folder, and still no luck getting the site to appear.

Anyone have ideas what the problem could be?