After spending 26 hours looking for the solution and contacting the Dreamhost chat 3 times I finally solved the problem on my own.
Make a new file called phprc.txt and add - max_input_vars = 3000
then place in a folder called 5.3 and take the .txt off of it.
Place the 5.3 folder into one called .php
Upload that .php folder into your main root folder
Go to your Dreamhost panel and make sure your php is set at
PHP 5.3 x CGI (that is the key - doesn't work on 5.4 yet and the chatline folks don't seem to know that)
Works now on 3 different servers for me.
Hope it works for you!