I figured out a way to setup LimeWire for multi-users and share a common directory.

I installed LimeWire 1.8c Installer version as root in /usr/local/limewire. Then put in a symbolic link in the /usr/local/bin with ln -s ../limewire/LimeWire18-c limewire. Then created the directory where I store all the mp3s. I created this in /usr/share/media/Share. Then, IMPORTANT, make another directory: /usr/share/media/Incomplete. LimeWire tries to create this by itself. Unless you run LW as root it can't. If it isn't there then you'll get "Can't download". Change mode of both directories with chmod 777 *directory name*. Went back to non-root and ran LW fine.