will dreamhost allow proxy and adult hosting?
It all depends on what you mean by "adult" hosting. If it is legal in the United States, and in California, you can host it. Note that "legal" also applies to copyright issues.
Per the "Terms of Service":
Also if you move to dreamhostps you can use proxys and persistent process, but with the normal account... No.
use VIC3M to get 50USD discount on all plans +10% on storage and bandwith, VICM3 to get the maximum disscount on sign up.