First of all, you didn't buy anything from anybody here - this is a customer to customer forum where DH staff rarely visits, and even more rarely posts.
As for what you say you were told...meh. Did you even read the Terms of Service and or the Abuse Center page I linked you too?
Do what you want...I was just giving you a "heads up", so you wouldn't be surprised when/if they terminate your account. There is no rule that you have to appreciate the warning!
Sure, you can upload anything you own the right to distribute , for example music, Movies, games, etc that you hold the copyright on or have legal permission to copy/distribute.
I'm not even gonna go into an argument with you over all that..the abuse.dreamhost.com site I linked you to explains it well enough - believe it, or not, it's up to you.
Ah...grow up! read the link I provided, and if you still don't get it, come back with an intelligent question.