I had similar problems with Limewire not working, and just blinking.
I solved my problem by doing the following:
1. Deleted all references to Limewire as described in previous threads.
2. Downloaded and installed the following version of Java for Panther:
http://www.apple.com/downloads/macosx/apple/java.html
Like you, I tried Java 1.4.2 and was told that I had the most current version of Java. You will be able to install the Java for Panther.
3. Reinstalled Limewire.
Hope that helps,
Ralph