Hi carenot,

First I want to confirm that Lightstreamer uses HTTP 1.1 (or HTTP 1.0 only if explicitly requested by the client); and that the server does not close a connection on its own initiative at least in normal scenario.

Now, I am not sure if you're complaining that due to too many sockets in TIME_WAIT you end up running out of available TCP ports and consequently you got connections rejected.
Or, on the contrary, that since the server is simply refusing too many connections figuring out if TIME_WAITs are related in some way.

By the way, could you confirm whether you are leveraging the <server_pool_max_queue> parameter (in lightstreamer_conf.xml)? Indeed, in this case I confirm that the Lightstreamer server, as long as the number is exceeded, keeps waiting the accept loops of all the listening sockets.

Regards,
Giuseppe