1)Log into your Dreamhost Account and where you can edit your username, you have the option to enable ssh.

2)In Your Dreamhost, where you see Extra Security, turn this off.

3)Get FFmpeg. usually dreamhost has most of the standard modules needed to compile and comes with subversion.
svn checkout svn://svn.mplayerhq.hu/ffmpeg/trunk ffmpeg

4) Setting Up the Tmp Dir
mkdir /home/username/tmp
TMPDIR="/home/username/tmp"
export TMPDIR="/home/username/tmp"
chmod 777 /home/username/tmp

(where username is the name of your ssh folder) - You can find this out with the command pwd )

4a) cd /home/username

5) svn checkout svn://svn.mplayerhq.hu/ffmpeg/trunk ffmpeg && cd ffmpeg

6) Lame Installation ( Inside FFmpeg dir)
wget http://mesh.dl.sourceforge.net/sourceforge/lame/lame-3.97.tar.gz

7) tar -zxvf lame-3.97.tar.gz && cd lame*

8) Commands to compile Lame
./configure --prefix=/home/username/ffmpeg/lame --disable-shared

9) make
10) make install
11) cd ..

12) FFmpeg Installation
./configure --prefix=/home/username/ffmpeg --cross-compile --disable-shared --enable-libmp3lame --extra-cflags=-I/home/username/ffmpeg/lame/include --extra-ldflags=-L/home/username/ffmpeg/lame/lib

13) make
14) make install

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This installation requires a bit more testing on Dreamhost Hosting but should work