It looks like a dial up modem driver to me too.

Do this simple test for us. Using your browser go here: http://www3.limewire.com:6346/ The page should say 'Your test worked!'. What happens when you go there?

You said you have firewalls configured. You should only run one firewall. Running 2 will in fact decrease your security because they won't function normally. So disable one of them. XP's firewall isn't that good so you might want to disable that one.

What other utilities do you have such as anti-virus, spyware, etc.?

When you say other computers are sharing the one connection, then since dial up is 56 kbps or about 6-7 KB/s in total up & down bandwidth combined, if you're sharing it, then there might not be enough left for LW to connect. Are there any other people using p2p programs on the same connection?

Open LW, set the option under connections to not connect after system startup. Tools>Options>Connections. Make sure LW is not trying to connect. Go to menu bar, File>Disconnect. Then wait 10 mins or so, then go to menu bar, File>Connect. Give it lots of time to try to connect. If no good, close LW & try again.