Actually, I've come up with a really elegant solution to this: switch to Nginx/Passenger.
Now that the Passenger gem support nginx out of the box, along with Ruby Enterprise Edition, the performance is better, setup is just as easy, and it actually works and gets updated in a timely fashion.
As far as I know, Litespeed still doesn't even support Rails 2.3.x without patching it to work with Rack.
Over the last 3 years of been pusing Litespeed left and right, running it on 6 client VPSes. In almost every case I've eventually hit a brick wall and turned to Nginx/Passenger. 5 down, one to go.
Don't get me wrong: I think Litespeed truly WAS the solution 3 years ago, but has ultimately lagged so far behind that it's not a real solution for Rails hosting anymore.