In reply to:
On
(Error) open_basedir causes rotator to only be able to write to this domain folder, thus it cant share files with your other domains.
Are you running it with that .htaccess file? It looks as though you are, as open_basedir is "feature" of DH's mod_php implementation. That script is looking scarier and scarier. 
In reply to:
Warning!
PHP is enforcing memory limit '50'M and this is insufficient to run the script. Optimal value is 64M. It takes a lot of RAM to open large images and edit them. Increasing this memory limit will require editing max memory setting within php.ini from 50M to at least 64M.
To fix that, you will have to abandon the use of mod_php, and either install your own version of PHP or use a copy of the DH PHP-CGI with a custom php.ini file. Both of these methods are allowed, but not supported, and most find it difficult to do unless you are very competent with PHP installation and the *nix shell.
Even if you succeeded with that, you are likely to run into CPU/Memory problems trying to run that on a shared server; the DreamHost procwatch program will not allow prolonged precessing activities on their webservers in order to facilitate the serving of webpages for all users on a server.
--rlparker