Dreamhost does not want you to use LOCALHOST. And so, I created one, and then entered it in, but still to no avail.
Tried using govpatel’s solution above, and at first, it seemed as if it would work. But once I entered in all of my database info, it said that it had an “Error establishing a database connection”. Not sure what else to do.
I’m installing this for the first time, latest version of WordPress downloaded today, hosted by Dreamhost. Should be easier than this… I’ve never run into problems installing WordPress until now.