I just wrote a blog entry with a pdf on how to secure your wordpress database password. This is a dreamhost specific solution. The solution was created two weeks ago by Tessa Blakeley Silver. Tessa is a consultant and a wordpress and joomla author.
The reason this is important is if your database is unmolested in an hacking attack, it is way easier to fix your site. Being able to secure the password from even the worst hacker who gained access to your website is an important tool in the disaster recovery hierarchy.