[Ntfu2]

Dreamhost support....good luck. Anyway try to follow along

Connect to your site via FTP

Create new folder called attachments

Set the CHMOD value to 0777 usually done with a right click -> properties, or CHMOD command.

Login to AdminCP -> Attachments -> Attachment Storage Type

Select move to filesystem (should be only option)

Set the "Attachment File Path" to the folder you just create (/home/sitename.com/attachments)

Hit the Go button, and simply read the on screen instructions.

tips: try not to set your attachment path to simply "/" that wont work, make sure to create a folder, for them or you'll have a file system mess for sure