Yesterday on the DreamHost Status Blog, it was announced that all shell/FTP passwords would be reset due to what looks to be a security breach that was discovered on one of the DreamHost database servers.
DreamHost looks to have done a great job notifying affected customers via the update page, keeping them up-to-date throught out the day until the issue was resolved. It looks like all FTP passwords were indeed reset.
We recommend that all DreamHost customers log into to their accounts and check their account status. It is encouraged that you change your account passwords, and it wouldn’t hurt to change your FTP and database passwords again just to make sure.