Hmmmm from your description I see 2 potential issues that may or may not be causing the problem.

Uninstall LimeWire this way in XP start>all programs>limewire>uninstall

1st seems you have a bad java installation. You can remove your java by going to start>control panel>add or remove programs ---find java and remove.

You can download the latest Java version from this link. http://java.sun.com/j2se/1.5.0/download.jsp

JRE 5.0 update 4 is what you want. I would suggest downloading the offline installation and save it to you comp. There have been problems with the online installations.

The other may be your display adapter you can search the forums here for it, and possible sollutions if the removal and reinstallation java didn't help.

Install the Java 1st then install LimeWire.