LW will go straight to queue, but should not get stuck there with reliable hosts. Try downloading one of the free files from a reliable source like www.magnetmix.com (no worries--they're all legal).

If you still get the same problem, then you're right that something is most likely borked with your setup. I can't say whether it is a System problem or a corruption with some LW settings.

Search these forums for "clean install" to see how to do that with your Operating System. If your OS allows the creation of a new Admin User, do that and install a new LW there. That will at least tell you if the problem is with your LW settings and/or your old User account settings. If the porblem persists, then it's a problem with your OS or worse.