Nobody process in LS 4.2.2
 

Was eager to remove Etags from header, so I quickly requested my server admin to update LiteSpeed to version 4.2.2.

Shortly after that I noticed that I couldn't upload images from Wordpress.
After reporting this problem to my server admin, he checked and found that litespeed is running some php processes as user "nobody" while some under the proper user.

Downgraded back to the previous version and the problem went away.

what's the error message when fail to upload? anything in the error log?

The error message when fail to upload is:

"The uploaded file could not be moved to /home/www.website.com/www/wp-content/uploads/2013/01"

this may be where the problem is. please check .htaccess, any directive like suPHP_UserGroup in it

Its correct. It work fine on older version so obviously its setup OK.

Earlier php must have been working as user and now since it is running as nobody, it can't save images in folders, which aren't chmod 777. So you can either fix the directory permissions or switch to suExec.

Are you using directadmin?

Please try update 4.2.2 to latest build, especially if you are using directadmin.
/usr/local/lsws/admin/misc/lsup.sh -f -v 4.2.2

Latest 4.2.2 build should have addressed this issue. Please do force reinstall of 4.2.2