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In order to host an IDN, you need to convert the original URL (containing non-ASCII characters) into Punycode (ACE). This can be done at a site such as mct.verisign-grs.com.

To host your IDN, you just have to set it up like you would any other domain, after you've converted it as mentioned above. To set up hosting for it, please click the 'Add New Domain/Sub Domain' button found in your control panel here: Manage Domains. Enter in the converted IDN (Punycode value) as the hosted domain and configure per your liking. Click the button to confirm the setup and you should be directed to a page with a green success message saying the domain has properly been set up for hosting. You can do the same for the registration, by registering the domain at the 'registrations' section of your panel, https://panel.dreamhost.com/index.cgi?tree=domain.registration&.

Keep in mind that some browsers limit which TLDs (Top Level Domains) they will display IDNs for. For example, Firefox currently allows IDN under .org and .info, but not for .com. (Here's a more complete list of which ones are supported.)