Some people have had trouble with Java 1.6.0_01 but I'm using it & haven't had any probs at all.

You had port forwarding set up before, you could try that again.I can't find your router listed here...is it the BEFSR411 or BEFSR41?? Have a look at the router list here, you'll find detailed instructions.
PortForward.com - Free Help Setting up Your Router or Firewall

Also try reducing your upload & download bandwidth a little. In LW tools > options > advanced > performance & disable ultrapeer capabilities.

You could also try this tip: Tip: Purge the Downloads Queue!