Google has released a pretty robust website stats package called Google Analytics. Straight from the horse's mouth:
Google Analytics tells you everything you want to know about how your visitors found you and how they interact with your site.
I've been a bit unhappy with the stats package DreamHost comes with, though granted I don't have much use for it anyway. Installing Analytics was as simple as copying three lines of code into my template, so it's too easy to not try it.
I can't really say much about how it works or the data it reports since no data appears despite them saying it'll be available "within 12 hours." Apparently demand was greater than they expected. I guess that's bound to happen when you release free, easy and useful software and your name is Google. A message on their help page dated (timed?) 5:22 PST states:
Currently, report updating for Google Analytics is experiencing delays. As a result, you may not be seeing any data in your reports even after implementing the Analytics tracking code.
We are currently in the process of updating all reports. You should be able to see these updates in several hours. While this is going on, you may notice different reports updating at different rates. Once this process has completed, all data should be restored to your profiles. Please be assured that this update process has no effect on data collection.
We apologize for any inconvenience. This reporting delay is associated with unexpected demand for Google Analytics. Under normal circumstances, the data in your reports will be at most six hours old.