The Phusion team contacted me with a working test version of Passenger a couple of months ago and since then DreamHost has been helping out with testing and ironing out lingering deployment issues. The Phusion team has been very helpful and responsive throughout the process and I think we will see a lot more great things from them in the future.
Now to the important part… how do you use Passenger on DreamHost?
Briefly, all you do is enable the Ruby on Rails Passenger (mod_rails) option for any existing or new web domain in the DreamHost web control panel. When you then point that domain’s web directory to the public directory of an existing Ruby on Rails application it will work automatically. For more detailed information, check out our Passenger wiki page.