dreamhost.com will run Sitellite no problem, with the following notes:

• Use FastCGI? instead of CGI-mode. It's much faster anyway, and it's supported.
• In inc/conf/config.ini.php set the usedocroot setting to On, docroot to /home/yourusername/yourdomain.com, and prefix to "".

That should be all you need to do.

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Interesting note: Sitellite actually automatically runs in Apache module mode on dreamhost.com since that's what the .htaccess file tells it to do. So the first note above doesn't matter.

Next up is trying to install APC cache on dreamhost to improve Sitellite's performance.