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what do you mean by LW on norton? i went to control pannel << security settings and it says my firewall is on
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Well if Norton Firewall is permanently on & I had no control over it I'd dump it! Trash it. Better off using Win XP firewall & making exception for LW & Java. (If norton is on, you'll probably never be able to open a port for LW!)
Yes you probably have a modem router. As for which is safer, static or dynamic I'm not in the know, I use a mac.
You'll need to re-check your settings. You must port forward the same port number for both LW, the modem-router & any firewall. Make sure your settings have been 'saved'.