That's really not good. You are not reaching the gnutella network at all. Something is blocking you. The question is what. Go to LW's menu bar, Tools > Options > Advanced > Firewalls & change to port forward & change both ports to one between 49152 - 65535. A good one to try is 64049. Press Apply. Go to File menu & choose disconnect. Wait a minute. Then choose Connect.

Other options I can think of at this point is ... is there another user account on your computer? If not create one with admin permissions. Then reset LW up for it. Only need a shortcut to the new account from the program (do it from old account), no need to re-install. Disable all firewalls temporarily in the new account. BOTH norton & XP firewall. Then try to connect.

BTW did you remove all your java & install java 1.5_11 ?

You could try Phex to see if you have the same problems. It is another gnutella program.