rsl12,
Religious taoism combined aspects of confucianism, including ancestor worship to create a kind of "hybrid" religion, much as Buddhism picked up aspects of the local religions as it moved Eastward (contrast "pure land" Buddhism w/ Theravada Buddhism for example).
I know this because I had to do a paper on it.
(I'll send you a copy if you want

)
Edit to add:
I don't think many westerners practice ancestor worship, I'm just saying that in the east you can find it and that there are definitely philosophical and religious versions of Taoism.