MySQL Connection Issues - Dreamhost

[eluser]Crazy88s[/eluser]
I'm trying to get my site working correctly on my host Dreamhost but I seem to be having an issue with MySQL. I get the following error when trying to view my site:

Unable to connect to your database server using the provided settings.

I have verified that my database settings are correct and I can access the MySQL database using Phpmyadmin just fine.

My config is as follows:

Code:

$active_group = "default";
$active_record = TRUE;

$db['default']['hostname'] = "sql.mydomain.com";
$db['default']['username'] = "user";
$db['default']['password'] = "password";
$db['default']['database'] = "databasename";
$db['default']['dbdriver'] = "mysql";
$db['default']['dbprefix'] = "";
$db['default']['pconnect'] = TRUE;
$db['default']['db_debug'] = TRUE;
$db['default']['cache_on'] = FALSE;
$db['default']['cachedir'] = "";
$db['default']['char_set'] = "utf8";
$db['default']['dbcollat'] = "utf8_general_ci";

Changing pconnect to FALSE didn't help.

Any advice is grealty appreciated.