I followed those steps exactly. It still didn't work. I'm not sure I have SFTP because Dreamhost says it's MYSQL.
Here's what I filled in:
Password: from Dreamhost
Here's what comes up:
Response: fzSftp started
Command: open "firstname.lastname@example.org" 22
Command: Trust new Hostkey: Yes
Command: Pass: *******
Error: Authentication failed.
Error: Critical error
Error: Could not connect to server