Hi Patio. Here is how LimeWire works.

1. You download something.
2. When it's finished it's in your library.(The place with all the files you downloaded.)
3. If someone wants a file you have they search for it like you did to get it in the first place. And they can download it from you or from someone else.

So basically no one is snooping in your computer. The only thing they see is the files you got on LimeWire. I hope this helps you.