After you deleted the preferences folder, did you have to go thru LW's setup wizard all over again?
Find the gnutella.net file, hover your mouse over it & see the file size. If it's around 20kb then that should be ok.

Did you try changing ports? If the test page won't load, it can sometimes mean that an ISP is blocking the default port. If you do change ports, remember to click apply & ok to save the change. You can try a few different ports in the range shown in the help thread.

Did you try rolling back to the earlier version of Java mentioned in the help thread?

Is there any model number/numbers on the modem/router?? Or any name, other than CenturyTel?

Looks like CenturyTel can provide a security suite, including firewall...check whether you have that as part of your plan.
https://www.centurytel.com/addSecuri...curity%20Suite
If you do have a firewall thru your internet plan, make sure that XP's firewall is turned off & that the other firewall is configured to allow LW.

Has this prob just started since you installed SP3?