disable suEXEC daemon mode to work around this.
there is an issue with per user dir php.ini in suEXEC daemon mode due to php internal handling. hence what you experienced.
in 4.2.1 (beta), LSWS automatically disables suEXEC daemon mode on per user dir php.ini. you can upgrade by issuing '/usr/local/lsws/admin/misc/lsup.sh -v 4.2.1'