It's actually even kinda different from Phred's "dawg talk" too. It does seem to kinda mingle the texting talk in with it to a degree, but also just deliberate misspellings such as "bai" for bye, "hai" for hi.

I found this "guide" to lolspeak:

Step one: Think of something to say.

Step two: “Engrish” it.

1) Mis-decline verbs, especially misuse the verb “to be”
2) Misuse gerunds
3) Overuse prepositional phrases
4) Blatant rearrangement of syntax
5) Incorrect plurals and past-tense verbs
6) “noun” your adjectives. (For instance, the adjective “blue” can become the noun “blueness”)
7) Improper pronouns
8 ) Drop the articles (”a”, “and”, “the”) in favor of adding “-age” to the end of a noun
9) Use “younger” words (”kitty” versus “cat”, “fuzzy” versus “furry”, etc.)
10) Use the word “with” inappropriately.
11) If you really can’t wrap your head around the concepts behind “Engrish”, try this: Go to babelfish.altavista.com, type your desired comment in, hit “english-to-Japanese”, then re-translate back to English. You have to be able to view special characters (the kanji). If you can’t get that to work, try translating to a different, european-text language, like German.

Step Three: Misspell words

Example:

Normal speak
“The cat has a bow on his head!”

Lolspeak
“Kitteh gots bowage on hims hedz!”


Here is also a lolspeak wiki page... http://speaklolspeak.com/?t=anon

I have seen lolspeak popping up more and more on PT, maybe some lolspeakers here could explain it better