The 500 error is not likely related to the rewrite rule, you can comment out the rewrite rule see if you still get the 500 error. Just acccess the rewritten URL directly, like /index.php/org/path .
We’ve ruled out anything to do with EE or the plugin at this point - this is purely a .htaccess and mod_rewrite issue, but we’ll work with you to try to figure out what is going on. It really does sound like a restriction on the hosting end, though.
I got this reply from EE.
Is their no limitations within litespeed for this rule?
I don't think it is the rewrite rule.
You can add "RewriteLogLevle 9" to the configuration of this vhost in httpd.conf. then check the rewrite log in error.log.
2007-07-13 11:21:02.248 [ERROR] [76.205.236.166:51693-0#APVH_www.DOMAIN.com] Maximum number of redirect reached.
2007-07-13 11:21:02.248 [ERROR] [76.205.236.166:51693-0#APVH_www.DOMAIN.com] Maximum number of redirect reached.
2007-07-13 11:21:02.326 [ERROR] [76.205.236.166:51694-0#APVH_www.DOMAIN.com] Maximum number of redirect reached.
2007-07-13 11:21:02.326 [ERROR] [76.205.236.166:51694-0#APVH_www.DOMAIN.com] Maximum number of redirect reached.
This is returning this, remember, this is the exact same working .htaccess code that is used in apache and recommended by EE.