Ok...I figured out what I needed to do.
Under the circumstances it was a must to cloak for a day but just created more work.
So, I 'deactivated cloak' under Manage Domains.
Then, under Manage Domains, I enabled 'Fully Host This Site'.
The site kept going to the cloaked destination despite this. So, I refreshed the DNS (blue "Go" when you go to Manage Domains, then click DNS). I waited a few minutes then upon visiting the site I just got an error message about the cloaking not working. I went to http://web-sniffer.net/ to check if the new changes took effect, and they did. It told me to close my browser and disconnect/reconnect my internet connection (not sure if i needed to do that but I did). Relaunched the browser and the "old site" appeared - which is good.
- The next solution was to just move Wordpress from the subdirectory where I originally, and mistakenly, installed it (i should have just installed in in the root directory).
I found out how to do this from these links:
Move Wordpress From Sub-directory to Root: http://codex.wordpress.org/Moving_WordPress
These forum links also provided some alternate solutions:
The Wordpress Move instructions seem daunting but it's not too hard. I forgot to remove the original "index.html" file so the "old site" kept appearing. Once I deleted it the new site appeared (displaying the new "index.php"). Dont forget to make backups of the old site and the Wordpress site BEFORE you make any moves.
As a side note:
It took alot of forum snooping, getting familiar with the Dreamhost Web Panel, and some Googling but everything seems to be working. Much appreciation to the 'grizzled vets' for replying to even the most mundane/stupid questions. Having hand-held instructions really helps. Also, if you posted a question and nobody responded but you eventually figured it out, make sure you go back to your original post and supply the solution. Those that did provided me with invaluable help...and it helps the forums!!