Sidon,
You should definitely point your domain to the /public directory &
change your mysql password asap.
Your current setup exposes the database.yml which anyone can read to
get access to your database server.
Since the database server probably hosts more than one database, your
other sites are
Sidon, I also have my sites in Dreamhost and this week I installed
Redmine to test it. It was a little tricky but I made it work.
You can check in my blog the steps (in spanish) I followed to install
it.
http://www.jorgeivanmeza.com/blog/2008/03/24/instalacion-de-redmine-064-en-un-host-com