Thanks for trying to help the original poster, but a couple of things need to be "set straight":
Good guess, but not correct. The ".paulina" is not the server name. The servername, per se, does not show up anywhere in the path. The ".paulina" is what Dreamhost calls a "dataglob". There are several posts about this on these forums, but the short version is that is a process by which dreamhost "groups" data, making it easier to move around should they need to in order to balance server loads.
For the purposes of running scripts on Dreamhost, these "dataglobs"are not relevant. In fact, if there is any place in your scripts' settings where a path is asked for, and/or should the script automatically populate the field with a path that includes such a "dataglob", Dreamhost recommends that you delete the "dataglob" part from the indicated path.
This is because it is not needed (Dreamhost handles it automatically), so there is no need for a script to include it. If you do put, or leave, it in the script, it will still work just fine unless Dreamhost should need to change it to rebalance things. If you have left the "dataglob" in the script, after the change it will be "wrong" and the script wont work; if you omit the "dataglob" reference from your script, Dreamhost will adjust to the "new" dataglob setting without intervention.
That said, the original poster's problem is different than yours (I'll try to help him/her next), but your problem is pretty simple to fix. You need to change the sql import text that you are using to delete the line:
bdatabase1 DEFAULT CHARACTER SET latin1 COLLATE latin1_swedish_ci;
At Dreamhost, you cannot create databases this way (you must use the panel). After you have created the appropriate database (that is now empty) you do your "import" without the "CREATE DATABASE" line, and the import will populate the existing database with the data that was exported (it will add and populate the tables).
From that point, just proceed as instructed and you should be fine.
BTW - whenever you are having these kinds of problems it helps greatly if you include the instructions you were following. It's never a good idea to assume that you were each given the same instructions from DH support, and if we can see what you tried to do, we have a better chance of picking up where it went wrong, what needs to be clarified, or what needs to be fixed.
It's not too late to do that - if you are still hung up, after trying your import without the CREATE DATABASE command, please post the directions you received from DH support, indicate which steps you have completed, and describe your problem as best you can and we will try to help.