Use of "would rather"

 Also:

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 would rather / should rather.  Which would you rather do—play professional baseball or sell used cars? In expressions of preference rather is commonly preceded by would: We would rather go to the lake than stay in town for the weekend. In formal style, you sometimes see should instead of would: I should rather my daughter attended a private school.

 The American Heritage® Book of English Usage. A Practical and Authoritative Guide to Contemporary English.  1996

 http://www.bartleby.com/64/C001/054.html

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MarvinTheMartian

"I'd rather you only saw / see me when I'm well"

"I'd rather you didn't / don't see me when I'm ill."

You have to use 'saw' and 'didn't see' because there are two people involved  --  'I' and 'you'.  Think of 'would rather' as 'wish'. I wish you only saw me when I'm well. I believe that's the reason for using the simple past when 'would rather' is used when there are two persons mentioned.

If there is only one person involved, the simple present is used. I would rather go to bed now. I wish to go to bed now. BUT I would rather you went to bed now. I wish you went to bed now.