Ya - the problem is not really in boot.rb - it's just that boot.rb is where the rails are actually loaded.
So, you will get such an error if you specify a version of Rails that simply does not exist on your Dreamhost slide. This can happen if you either upgrade your project, start a new project (and forget that you updated the rails at that time), or if you are still using the old version of the rails, and now it has been removed from the dreamhost server on.
To find out what is, take a look at config/environment.rb for a line that will read something like:
RAILS_GEM_VERSION = '2.3.4' unless defined? RAILS_GEM_VERSION
Then ssh to your Dreamhost server and enter gem list and see if your version is on the list.
If not, try a few options. Suppose the version you are using is 2.3.4 First, try: gem install rails -v=2.3.4 , then restart. This may be all that is required. If this does not work, try freezing and unpacking the gems (according to another answer here).
There is another possibility: you actually do not have a gem on which the rails depend, but which fails - for example, dependence on a particular version of the rack caught me once. But you may also have other gemstone addictions.
If you run rake gems , you can list all the gems that your project knows about what they need - make sure they are installed to begin with.
Then, as a kind of rude smoke test, try running script/console - if you lack an important rail harness, script/console will not load and should fail by providing you with a notification about the gem you need.
Update : If you are trying to run v 2.3.5, you may also encounter this problem: Bypassing a rack version error using Rails 2.3.5
In this case, you will need to follow the instructions.