litespeed proxied just fine, but for anyone attempting to do what I did don't bother, it wont work. Microsoft's Remoe Desktop Web Connection or RDP via IIS does not tunnel the RDP session over port 80. Rather it merely sends the requestor an Activex version of the remote desktop application and "hooks you up" with the target system. Port tcp 3389 still must be open for the session and thus this service cannot be proxied unless you have the ability to tunnel from your local host out. Which if I had, I wouldn't be doing this exercise in the first place...
Next question along these lines is if the litespeed proxy will proxy other applications such as ssh?