Ah, the joy of following instructions that leave out all the important details
You see, application/x-httpd-php isn't really a content-type, its used so Apache realizes to a use a PHP SAPI on the file.
And of course what the article leaves out is that particular token is usually used to run PHP under mod_php SAPI. Though on my machine it runs it under an Apache 2.0 Handler SAPI. Same difference I guess - PHP runs as the server user 'dhapache', which is not good....
Anyway, DreamHost doesn't support running mod_php so I'm not surprised it doesn't work the same on your machine. So you're stuck with the CGI/FastCGI SAPI instead, and you want this in your .htaccess file:
AddHandler php5-cgi .php .htm .html
Do not add the RemoveHandler directive.
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