This is more a windows or installation issue than a connection issue.

I know you reinstalled Java, but try again using suggestions in the next link
http://www.gnutellaforums.com/connec...tml#post333278 Remove 'all' versions of Java after having downloaded the OFFLINE versions of both LW & Java.
Oh another step to add
before reinstalling LW is deleting your LW preferences folder. The instructions are in a link at bottom of the above linked-post.
BTW is there any other security programs you have installed lately such as anti-spyware programs? Depending on which one, some are not designed to cope with p2p programs & think they are spyware (poor programming or poor attitude by the programmers) & may damage the LW program by removing parts of it or simply prevent it opening (LW would need to be put on their 'safe' list.)