Unfortunately, this is one of the flaws in the way LP arranges domains. The only way I can see to work around this is:
You want -
http://www.domain1.com/ http://www.domain2.com/ http://other.domain1.com/ http://other.domain2.com/ and both sub- domains should refer to different sites.
What you need to do is delete the sub-domain over your second domain. Then, create a new sub-domain with its own unique name. Then, use .htaccess, and mod_rewrite all calls for the original sub-domain over the second domain to the new sub-domain. At least, that should work. Get a second opinion before you try it, or e-mail support.