You might also be wise to try deleting your LW Preferences folder whilst LW is closed; instructions here: Point #2 & 3 in Fixes for Limewire (sample image included at bottom of page.)

(Sorry I don't have XP so I can't remark on the SP2 patch.)

BTW on dial up, DON'T use the Resume/Find Sources function on all your incomplete files at once. That is likely to cause such symptoms & use all your systems resources. Instead, if you do use those functions then just use on one or 2 at a time. That will hopefully reduce the side-FX.