There is no doubt that we will recommend LiteSpeed + LSAPI. 
Not only because we are the developers of LiteSpeed Web Server, but also
LiteSpeed + LSAPI has solve some problems that other setup cannot.
There is my take based on information collected, please correct me if I
were wrong. Not to criticize others, just want to help people making
decisions.
Apache/lighttpd + FCGI: Apache and lighttpd does not support FCGI
persistent connections, lighttpd FCGI has reliability issue. Cannot do
dynamic spawning due to high cost at Rails framework initialization
time, system resource could be wasted under some situation like Rails
hosting services.
Mongrel is very easy to use, and Rails performance is pretty good as
well. Its weakness is on serving static files, usually need to be use
with other web servers in production environment that receiving high
traffic. Need to run multiple instances with mongrel_cluster to take
advantage a SMP server and serving multiple clients at the same time,
the setup has been complicated a little bit. Same as FCGI, you cannot do
dynamic spawning with mongrel either.
Since Pound cannot serve static content, Pound + mongrel_cluster is not
a optimum solution unless most of traffic is dynamically generated,
adding an extra layer of web server helps, but it will complicate things
even more and introduce higher latency and server load. Lighttpd +
mongrel_cluster is not recommended by Zed, the developer of mongrel, due
to bug in lighttpd proxy, at this moment.
LiteSpeed + mongrel_cluster probably is the best solution for user who
prefers Mongrel right now. Jason from textdrive.com has written that
Apache 2.2 + mongrel_cluster has the best performance in his blog, We
cannot confirm that because we haven’t played with Apache 2.2 yet,
however, textdrive.com and strongspace.com are all powered by LiteSpeed
currently. 
LiteSpeed + Rails via LSAPI is designed to overcome issues mentioned
above after analysis their Pros and Cons.
Here is a Rails benchmark by third party. It is in Japanese, but the
graph is an universal language.
http://wota.jp/ac/?date=20060608
Tutorial on LiteSpeed + Ruby is in our Wiki
http://www.litespeedtech.com/community/wiki/doku.php
Best Regards,
George W.