Did you configure your firewall so it allows LW full access (advisable not to have 2 active firewalls b/c they can interfere with each other); Firewall configuration instructions (click on link)

You might also consider this http://www.lvllord.de/?url=tools for SP2.

If you're on a LAN, is it at work, school or home? If others are using the net at the same time on the LAN, particularly other p2p sharing programs then it might be stealing bandwidth away from LW.

After LW's been open for 20 mins or so, do this test: Bug Report instructions & sample image Is the result True/False?