No running both at same time would be a little laggy for SL I think lol
Which version of LW are you using? Perhaps update your gnutella.net file: If LW Will Not Connect (click on the blue link)

Check your keyword filters, make sure you have not inadvertently filtered out important words. Also 'show' Junk at bottom of search results just in case items are being filtered out of search without you realising.