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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 RQSGVy9rnVQsR3LsEdgEYQ==

<SEC-DOCUMENT>0001179110-03-008343.txt : 20031002
<SEC-HEADER>0001179110-03-008343.hdr.sgml : 20031002
<ACCEPTANCE-DATETIME>20031002181047
ACCESSION NUMBER:		0001179110-03-008343
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030930
FILED AS OF DATE:		20031002

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SMITH STEPHEN JAMES
		CENTRAL INDEX KEY:			0001258252

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10013
		FILM NUMBER:		03925480

	BUSINESS ADDRESS:	
		STREET 1:		1 JENNER
		STREET 2:		STE 100
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92618
		BUSINESS PHONE:		9497432000

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VITALSTREAM HOLDINGS INC
		CENTRAL INDEX KEY:			0000789851
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				870429944
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		ONE JENNER
		STREET 2:		SUITE 100
		CITY:			IRIVINE
		STATE:			CA
		ZIP:			92618
		BUSINESS PHONE:		(949) 743-2000

	MAIL ADDRESS:	
		STREET 1:		ONE JENNER
		STREET 2:		SUITE 100
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92618

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SENSAR CORP /NV/
		DATE OF NAME CHANGE:	19990501

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LARSON DAVIS INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CRITERION VENTURES INC
		DATE OF NAME CHANGE:	19871126
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
<periodOfReport>2003-09-30</periodOfReport>
<notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000789851</issuerCik>
        <issuerName>VITALSTREAM HOLDINGS INC</issuerName>
        <issuerTradingSymbol>VSTH</issuerTradingSymbol>
</issuer>
<reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001258252</rptOwnerCik>
            <rptOwnerName>SMITH STEPHEN JAMES</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O VITALSTREAM</rptOwnerStreet1>
            <rptOwnerStreet2>ONE JENNER SUITE 100</rptOwnerStreet2>
            <rptOwnerCity>IRVINE</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>92618</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>0</isDirector>
<isOfficer>1</isOfficer>
<isTenPercentOwner>0</isTenPercentOwner>
<isOther>0</isOther>
<officerTitle>Chief Technical Officer</officerTitle>
<otherText></otherText>
</reportingOwnerRelationship>
</reportingOwner>
<nonDerivativeTable></nonDerivativeTable>
<derivativeTable><derivativeTransaction><securityTitle><value>Stock Warrants (Rights to Buy)</value>
</securityTitle>
<conversionOrExercisePrice><value>.30</value>
</conversionOrExercisePrice>
<transactionDate><value>2003-09-30</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>A</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
</transactionCoding>
<transactionAmounts><transactionShares><value>20833</value>
</transactionShares>
<transactionPricePerShare><footnoteId id="F1"></footnoteId>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>A</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<exerciseDate><value>2003-10-01</value>
</exerciseDate>
<expirationDate><value>2006-09-30</value>
</expirationDate>
<underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value>
</underlyingSecurityTitle>
<underlyingSecurityShares><value>20833</value>
</underlyingSecurityShares>
</underlyingSecurity>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>504789</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</derivativeTransaction>
<derivativeTransaction><securityTitle><value>Series A Preferred Stock</value>
</securityTitle>
<conversionOrExercisePrice><value>.235</value>
</conversionOrExercisePrice>
<transactionDate><value>2003-09-30</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>A</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
</transactionCoding>
<transactionAmounts><transactionShares><value>25</value>
<footnoteId id="F2"></footnoteId>
</transactionShares>
<transactionPricePerShare><value>1000</value>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>A</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<exerciseDate><footnoteId id="F3"></footnoteId>
</exerciseDate>
<expirationDate><footnoteId id="F3"></footnoteId>
</expirationDate>
<underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value>
</underlyingSecurityTitle>
<underlyingSecurityShares><value>106383</value>
</underlyingSecurityShares>
</underlyingSecurity>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>25</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</derivativeTransaction>
</derivativeTable>
<footnotes><footnote id="F1">The securities were purchased at a price of $1,000 per unit consisting of one share of Series A Preferred Stock and a warrant to purchase 833.33 shares of Common Stock</footnote>
<footnote id="F2">Each share of Series A Preferred Stock has a liquidation value of $1,000 and is convertible into 4,255.32 shares of Common Stock</footnote>
<footnote id="F3">Series A Preferred shares have no restrictions on vesting or expiration date, but are redeemable at the option of VitalStream Holdings, Inc. after September 30, 2009</footnote>
</footnotes>
<ownerSignature><signatureName>/s/ Stephen Smith</signatureName>
<signatureDate>2003-10-01</signatureDate>
</ownerSignature>
</ownershipDocument>

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</DOCUMENT>
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