LW 4.16 will work fine on OSX 10.4
Did you do a safe boot & repair permissions;
SAFE Boot & Repair Permissions. Reformatting a drive can affect permissions & ownership.
But you WILL need to remove the install limewire.pkg file first before OSX will let you install an earlier version than LW 5 since you already attempted to install LW 5. The message you received is typical of having installed a later version of software & an earlier version installer failing because OSX will not let it install.