As long as you guys are sure that files aren't sitting connecting because they're fakes (new releases with heaps of sources), you could try deleting the LW preferences folder. bomb13, your problem sounds different to the normal fake files issue. Make sure LW's properly closed before deleting the folder, see points 2 & 3 below
Fixes for LimeWire

This will kill all of your settings within options, you'll have to go back through & reset things afterwards