Here’s how CSS/JS preprocessors like SASS, LESS, CoffeeScript etc and remote server workflows fit together.
LiveReload only compiles files locally, so you need to figure a way to upload the resulting compiled files. Some day LiveReload will learn to handle SFTP, but for now, you will either need to tell Coda/Espresso/Transmit to upload the changes, or use something like Sublime SFTP plugins’s monitoring function to upload compiled files automatically.
Luckily, you don’t need to do this on every CSS change because LiveReload has an ‘override’ function. So your workflow looks like this:
This is moderately painful, but still a vast improvement on anything you could do without LiveReload.
When using this, it may be painful: LiveReload only compiles files locally, and it’s up to you to figure a way to upload the resulting compiled files. So far, the best tool for the job is Sublime Text 2’s SFTP plugin, which has a monitoring option.