OK. Been there, done that. Never figured out what was wrong though. The only difference is that I could still use the internet when it happened. I updated and it was fixed.
There are a few things that I found helped a little.
1. find a download that has trouble downloading. Something you know is legit though (not spam). use the find sources and resume on it until it says awaiting sources.
2. In you monitor window check the box for show incoming searches.
If this makes no difference for you what-so-ever then try a complete clean install of both Java and Limewire. It just might help.
I mean everything. Uninstall Limewire using Start>Programs>Limewire>uninstall
Then do a search and delete everything Limewire related (not your downloads off course
) including preference folder, incomplete folder, themes etc.
Remove all java through add/remove programs and then reboot your PC. If you have a registry cleaner then use it to find traces of both programs (there is no need to delete other entries then for these programs) Then reboot again
Now reinstall Java. Current version is now 5.0 update 9 I see. Choose this one
Java Runtime Environment (JRE) 5.0 Update 9 and choose the offline installer
http://java.sun.com/javase/downloads/index.jsp
Download Limewire again from
www.limewire.com and again choose the offline version.
Install Java first and then reboot again before installing limewire.
Hopefully that should work.