I used to have Limewire Basic 3.x (not sure of the version). I was running OS X 2.8. In Limewire preferences I told it to save to iTunes. Then Limewire would save songs into appropriate folders and also put them in an iTunes playlist called Limewire. It did this automatically.

Recently I upgraded to OS X 10.3.9. Shortly after, I also decided to go to Limewire Pro 4.10.9. At this point, Limewire no longer saves to folders within iTunes Music or puts songs in the Limewire playlist. Songs go into the iTunes folder as separate files. It is very inconvenient compared to how it used to work.