This is normal. Panel log-ins are separate from FTP/SSH log-ins.
To give your friend Panel access, you will need to create a WEBID for them and configure the Panel privileges you wish to give that WEBID. This can be done via the Panel at Billing -> Account Privileges.
Save [color=#CC0000]$50[/color] on DreamHost hosting using promo code [color=#CC0000]SAVEMONEY[/color] ( Click for promo code details )