Make sure you've still got iTunes sharing enabled within LW (tools > options > iTunes > sharing). You might have to delete your preferences folder, points 2 & 3 here
Fixes for LimeWire
Doing this will kill your settings within Options, you'll have to go back through & reset things afterwards.
I don't know why the update would change anything, mine's still ok after updating a couple of days ago
If dragging & dropping's not working, see if
file > add file to library works! This sticky has a lot of info & links in case you need them
Transferring music to iPod & iTunes