A libertarian Socialist, like myself, is someone that opposes both capitalism and the state. We believe that the economy should be run by the people - either through cooperatives, worker's councils or assorted other structures. This is different than State Socialists who want the government to run the economy (such state-centralization ends up creating state capitalism since government bureaucrats end up establishing themselves as a new class). In addition to the abolition of capitalism, the state should either be abolished or drastically shrunk. Many Anarchists claim that the term means the same thing as Anarchism, this is debatable though since there is a small minority of self-described Libertarian Socialists who want a limited government that actually represents the people instead of no government. The word "libertarian" was used in the late 19th century by many radicals as a synonym for Anarchist and still is in many parts of the world.
Joe R. Golowka JoeG at ieee.org
"Equality of political rights, or a democratic State, constitute in themselves the most glaring contradiction in terms. The State, or political right, denotes force, authority, predominance; it presupposes inequality in fact. Where all rule, there are no more ruled, and there is no State" - Mikhail Bakunin