They now have a mod_php 4.4.2 that allows for the smoothest install ever of phpld.
Anywho, you do NOT need 'php as cgi' ticked off.
For those having problems with dreamhost who haven't been upgraded yet with the mod_php 4.4.2, and when installing phpld, take these steps.
1. upload and set all your permissions where need be.
2. TICK run php as cgi (give a few minnutes to resolve)
3. Run your installation etc etc.
4. Once you get to the final screen to 'login as admin or view directory, go back into dreamhost and UNtick 'run php as cgi' (few mins to resolve)
5. go back to your directory and login as admin.
6. live happily ever after
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