Cool. Well not cool that it was OE, but cool that you have solved the problem and deleted the offending file.
That is just a side affect of the way users are handled here at DreamHost. Basically, you do not have root access and there is no 'admin' user. Your default (DreamHost created) user and any users you create all have their own home directory. When you log-in via FTP using a particular users credentials you will only see the contents of that users home directory, including the web accessible directories for the domains under their control. You will not see the web accessible directories for domains controlled by other users.
This does make things problematic at times, but its just a side affect of DreamHost allowing us to create 'real' *nix users.
Anyway, I am glad to hear the problem is resolved.
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