Do steps # 1 & 2 only here:
Fixes for Limewire Unless you have a graphics card issue, I'd suggest updating to Java 1.5 but use the "Offline" installer.
If still problems, get the "Offline" LW installer & reinstall. Also delete your LW prefs folder again just before doing that.
http://www.limewire.com/english/content/download.shtml