First of all, make sure that the XP firewall's off & that the Bullguard firewall's configured to allow LW.
PortForward.com - Free Help Setting up Your Router or Firewall

Some people have had problems with Java 1.6.0_02, try this version instead. Use the JRE offline installer & remove your current Java version before you install this one.
Archive: Download Java 2 Platform Standard Edition (J2SE) 5.0 Update 11

You could try port forwarding for your router. These are the instructions for the VT2442...see if things are the same for your model.
Port Forwarding for the Motorola VT2442
Don't forget the step of stting up a static IP address first. LW's listening port, port in the 'manual port forward' box & port forwarded within the router all have to be the same number