First thing to try: Delete LW's preferences folder when LW's properly closed. See point 3 here & also point 2 if you've used older versions of LW in the past (there could be a folder in either location).
Fixes for LimeWire
This will kill all of your settings within options, you'll have to go back through afterwards & reset things. If you're not sure of your settings, go through LW's tools > options & write them all down, so that you can reset things later.

Make sure that the XP firewall's off & configure the McAfee to allow LW.
Port Forwarding for the McAfee Security Center

Your Java's pretty old, see if an update helps. Use the JRE offline installer & remove your current Java version before you install this one
Java SE Downloads