I'm having the same problem... I'm on kroner, too.
Does your domain name point to DreamHost's DNS servers? Mine doesn't. Could that be the problem?
[kroner]$ mysql -u habbo -p -h mysql.faithfreedom.org habbo
ERROR 1045 (00000): Access denied for user: 'email@example.com' (Using password: YES)
Like I said, faithfreedom.org doesn't point to DreamHost's DNS servers yet. When you go to http://www.faithfreedom.org/ , the site is loaded from HostRocket's server, not DreamHost's. We're just transferring the site.
Please, people, I would really appreciate help as I need to get this working as soon as possible.