Oops -- it seems to have created the file with a ".txt" extension. The name needs to be "launch.properties"... To rename it, go back to the place you created it, and then click 'Tools' and 'Folder Options' from the menu at the top. Then click the 'View' tab. There, uncheck the box infront of "Hide extensions for known file types". Then click 'Apply' and 'OK'. After that, right-click on the file again and rename it to "launch.properties" (it should be listed as "launch.properties.txt" before renaming).

Then try LimeWire again. Sorry for the confusing directions!

Thanks,