The spinning lime is searching.
Try to configure the AVG firewall for LW, look at the thread I gave you for tips. If you absolutely can't do it, turn off the AVG, turn on the XP & configure that one.
Are you seeing the firewall icon (brick wall in front of the globe, bottom left)?
Here's a thread about direct connect probs. It may/may not be useful. ???.
http://www.gnutellaforums.com/showth...248#post190248