I am having a tough time with this as well.
This is what I have on my blogger settings
FTp Server:: sepulveda.dreamhost.com
Blog URL:: http://www.mydomain.com
FTP path:: www.mydomain.com/
BLog Filename:: index.html
When I publish, it works but then i cant see the blog...it just has the parent directory page.
What am I doing wrong. I own the domain and host with dreamhost but want to redirect my blogger blog to mydomain.com