This is affects cgi.rb and all programs that use that.
LiteSpeed Ruby-LSAPI should not be affected. You would only be affected if you use Mongrel behind LiteSpeed or straight-through Rails using plain CGI.
This is a Ruby cgi.rb module problem. In fact, the author of the bug notes that litespeed's internal timeout system will kill the run-away process unlike other implementations.
Regardless, we will keep an eye on this.