Uninstalling service gave error: 800705AF: The paging file is too small for this operation to complete
or
TWMIMisc.EnumMSSQL: No more threads can be created in the system
http://support.microsoft.com/kb/981314 is a hotfix that should be installed. It addresses WMI issues..without the hotfix WMI eats memory..hence the memory errors during the LiteSpeed install failure.
First, install hotfix, unistall old LiteSpeed version, remove manually any left overs from previous installations (the xps, dlls, etc), install the new version of LiteSpeed.