That's right, LW will install just the minimum required version of Java if it detects you don't have it installed. So it's best to update to a later version before you install LW. Update Java: Java 1.4.2 (click on link)

Can you give us a total desciption of your set up:
1. Operating System version,
2. What firewalls you have,
3. ram, 4. HDD space available,
5. Connection type,
6. Modem & router brand name & model numbers,
7. Where are you trying to connect from (home, school, work, etc.)?

These details are vital if you want us to find out what your connection problem is.