I had the exact same problem. After a bit of research I found that the
dispatch file hashbangs (in all three dispatch.* files) were incorrect
- they were pointing at my Windown install of Ruby!
1: If you create Rails projects on a Windows machine, you'll have to
copy the hashbangs over from another project. You can copy the whole
files if you like.
2: You'll have to set them as 'execute' as well as 'read/write' chmod
3: If you create your Rails project on the deployment machine, you
should be OK. Subversion my easily screw up the perms though.
Hope that's it!
What are the advantages of Litespeed? I'm on Apache and Mongrels...