I wonder about Norton AV settings.

Even though your XP Firewall is disabled, may I suggest you configure LW's access thru it just to be on the safe side: http://www.limewire.com/english/content/firewalls.shtm

Might I suggest you delete your LW Preferences folder b/c it may be corrupt which is causing these issues. Instructions here: Fixes for Limewire

Also, go to LW's menu Tools>Options>Advanced>Firewalls & tell me what it's set to. Is it UPnP?

After LW's been open for at least 30 mins, do this test: Bug Report instructions & sample image Is it True/False?