Go to LW's preferences>Searching>Basic & untick show license & press apply. (Sample image:
Licence requirement (click on link))
Also, LW's preferences>Speed & tick disable Ultrapeer capabilities.
You don't have a lot of ram i notice. That might be semi-related to your issue.
Is that a Ricochet or Repotec wireless router. Most wireless routers use NAT firewalls. So unless yours uses UPnP (Universal Plug & Play), you may find your LW is partially blocked by the NAT firewall. If there's a UPnP switch on the device, make sure it's enabled. Though if Linksys makes them then they should utilise UPnP. If not, you may need to forward (open) a port.
BTW try connecting without the router & see if you have the same problems.
Oh I just realised you're using dial up. They must be using a speed up dial up service. AFAIK that just means they maximise the speeds for browsing/surfing.