I heard that story too, I am sure that someone somewhere was dumb enough to do it. Acid comes in crystal form before its deluted and put into some medium such as paper, gel tabs, sugar cubes, liquid, etc. 1 gram is about enough to do 100 sheets, so that is well within a lethal amount.l Respitory failure and heart attack are the most common causes of acid death, i think it would be the most horrifying way to die.
All the stories of people physically dying from lsd are controversial at best, there is not one well documented proven case. The LD50 and LD100 studies on animals cannot nor should not be construed to indicate how a human reacts to equivalent dosages given the large differences in the species.