expatCanuk,
I ended up with a 54cm LHT, but only after much agonizing over the 26" wheels. I got mine at a really good dealer who used a "Fit Cycle" which is a totally adjustable bike frame which can mimic any bicycle geometry. It was between a 54cm and 56cm LHT for me but the edge went to the 54. We also tried mimicing the usual suspects like the Cannondale T2000, Trek 520, etc.

I really wanted the LHT because I could build it exactly the way I wanted and so started agonizing over the 26" wheels vs 700c. After some investigation, someone finally said "if you close your eyes you'll never be able to tell the difference". This somehow resonated with me (not withstanding the fact that his advice might result in my being wrapped around a tree) and I went for the 54cm LHT and the 26" wheels.

After about 300 miles on roads, trails, dirt and even a dry river bed I believe he is right. There is simply no regrets with respect to the handling of this bike and the 26" wheels.