[EDIT] You edited your post while I was spending a lot of time answering it. This is the answer to your previous post before you edited it. It normally wouldn't make any sense since you removed the questions that I answered. I have run into this scenario before so you will notice that I have included your questions with my answers. Please don't do that again
I bought a few MCP23018 port expanders ...
These are a bit different from the 23017 versions. They have open-drain outputs so you would most likely need pull-up resistors on each I/O pin. They also have a different pinout and they use a different technique for addressing more than one device but it still looks like you can use up to 8 of them on the I2C bus.
but I'm having trouble grasping exactly how they would work in conjunction with the LCD's.
Each 23017 or 23018 gives you 16 I/O pins. A single parallel LCD module requires 6 pins. You can run multiple LCD modules by paralleling 5 of the LCD lines with a separate E line for each module. That means that two LCD modules need 7 I/O pins, three LCD modules need 8 I/O pins etc. With 16 I/O lines you can run eleven LCD modules. Check out this thread: http://www.arduino.cc/cgi-bin/yabb2/YaBB.pl?num=1265969050/0. I suppose it is possible to run serial LCD modules from a port expander but I expect that you will have to write your own 'bit-banging' software.
Since the LCD's I'm using have up to 8 changeable address, would that mean I'm limited to 8 LCD's per bus ...
Yes, if you are referring to I2C devices and the I2C bus.
... rather than 8 LCD's per port expander?
As I said previously you can run eleven parallel LCDs from a 16-bit port expander and you probably would not want to attempt to run any serial LCDs via a port expander.
Is it possible to set up a sub-addressing system to get around this?
I suppose it's possible. I wouldn't want to try it.
How many buses can I run on a single arduino?
As far as I can tell the Atmel processors used on the various Arduinos have a single I2C bus.
Also: The Mega2560 that you linked to in your original post has 54 digital I/O lines so it could theoretically run more than 4 dozen parallel LCD modules. I think you may run into crosstalk (interference) between the enable lines but you might be able to make it work. It seems like overkill to use such a device just to get more I/O lines.
Don