I think you will be much happier in the long run if you abandon the routine use of net2ftp (DreamHost's webftp) and use a "real" ftp/sftp client. While it works "well enough" for occasional and light-weight use, most other ftp client software is more robust. These other clients also have some troubleshooting advantages, as you can often monitor the actual server messages.
There are many out there, and most people have their favorites, and many are "free". The DreamHost wiki has a pretty good list of popular ftp clients for various operating systems: http://wiki.dreamhost.com/KB_/_FTP_/_Using_FTP_clients. You might want to obtain and try one of those; I think you will have much greater success.