I HAVE FOUND YOU AGAIN IN THIS 64-BIT JUNGLE!!!!!!!! Oh how content I am to have litestep working on Win7.
Turns out all you really need to do is install LOSI 0.45 (or whatev the recent one is...) and then drag and drop the executable and .dll file in the 0.25 alpha build into the litestep directory. THEN (this is what I think was causing my woes) you need to download a little .exe file called setshell64: http://lsp.litestep.info/index.php?page=index;item=145
Voila! LS is working super now :D. Although I miss the windows 7 superbar and the fancy desktop fade (although if you get jdesk-0.75, you still get changing desktops, just not with the