Okay, now it is starting to become clear. Posting the whole error message helped a lot. The error message can be a little misleading, and the situation is complicated further by the way Dreamhost has MySQL permissions set up.
On Dreamhost, you cannot create databases via phpMyAdmin, or from the command line for that matter. You first create your database from the Goodies-->Manage Mysql section of the Control Panel. This is the only way on Dreamhost that you can create a database.
Once you have done that, or if you have already done it (which I suspect is the case as you can access the database via phpMyAdmin!), you can then import your data from the previous export.
The problem you are having is because the export included a "create" statement (you could have simply exported the tables, and then imported them). The error message is not telling you that you do not have "access to the database", but that your "access to create the database is denied as you do not have permission to do that (which is correct as explained above). Fortunately the fix is very simple.:
Open the exported query file in a text editor (not a word processor) and simply remove the line "CREATE DATABASE
kayblog DEFAULT CHARACTER SET latin1 COLLATE latin1_swedish_ci;", then save the file and attempt your import again.
Now it will not "gag" on the "CREATE database" statement , which is not needed anyway, since you already created the database, and will proceed to import and populate the tables. When completed, you should be good to go.