Hi Gazza
You have a NAT router which blocks most of your incoming ports. It will need to have port 6346 opened (LW given permission to use that port) & also Force IP within LW. You should also configure XP firewall & any others you have here: http://www.limewire.com/english/content/firewalls.shtml to allow LW access. At present your LW is blocked from a full connection & possible totally blocked. One way to check is to go to this site: http://www3.limewire.com:6346/ & if the page says it's a success then at least you can access outwards thru port 6346 which is the port LW uses.

You might also delete your LW using add/remove control panel or uninstaller that comes with the installer & try instead re-installing english version. That way you'll be able to use up-to-date Java which is very important for LW.The international version forces LW to use Java 1.3

Your installation errors might have been solved if you saw this thread sticky about updating your installshield engines: Installshield updaters
Also update your Java: Java 1.4.x OR Java 1.5 (take the JRE) Update your Java before re-installing LW!