Ftp Dreamhost Login
DreamHost offers a built-in FTP client in the panel, called 'WebFTP'. View the following article for further details: Using WebFTP; You can use an FTP client to create and edit files for your website. This is an easier way to create and edit files compared to using the command line.
Creating and editing files via FTP; Locating your FTP login credentials. Navigate to the Managed WordPress page. To the right of your domain, click the Manage button. On the bottom left you'll see a 'File Upload' section. Under the WebFTP button click the toggle next to 'Show Credentials'. Your DreamPress FTP credentials display.
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DreamHost was trying to explain that since URL re-mapping only affects the way a web site works it will not make a difference when using FTP or SSH2. If it simply a matter of being too lazy to change the current working directory, any real FTP client will allow you to configure it to do that for you automatically when logging in.
What's lost with webftp are many features that other ftp clients make available to you. In short stick with the full installed ftp client. webftp can be used in a pinch but doesn't have to robustness of something like filezilla or winSCP etc. As for where to put your files: Navigate to "manage domains" in the dreamhost panel.