You say the latest version, do you mean LW 4.0.10 or something? Go to LW's menu bar, Help->About LW & this will tell you.
If LW shows it has a good connection (all green bars or all light blue) & you can't get search results, then it might be due to your ISP. In the bottom left corner is the connection as suggested? Or do you get red bars? (see image sample below)
Try downlding a file from here:
http://www.magnetmix.com/video.shtml
Do you get anything downlding?
After LW's been open at least 20 mins, do this test:
Bug Report instructions & sample image Is the result True/False? (Are you sharing any files?)
(Oh I didn't see Stief's post. I must have taken longer than I thought looking thru OS 9 snapshots lol
)