m3u files are purely playlist listings. They are not music files, but are often confused with them!
You need to find where your downloaded files are saved ... in preferences > saving. The files you find in this folder are the music files you need to burn. You cannot (afaik) burn from a Limewire playlist
If you are on a mac iTunes is something you should really have. It will organize your files and you can burn files from iTunes.
You need , In short to get your files onto the new computer, not the playlist.
I hope this helps, if not please let us know.
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