Seems I made a mistake.
I did not realise I still had Java 1.6 on my Windows 7 system & that is what LW was using. Seems LW will not run with Java 7 (1.7). It's not normally recommended to have more than one version of Java on your system. However, it is possible. But I'm not sure if this will affect Android SDK with Java 1.6 JRE still on your system.
After I uninstalled Java 1.6, LW stopped running & reinstalling 1.7 made no difference. But after reinstalling Java 1.6, LW works fine. Still with Java 1.7 on the system.
The present Java 1.7 version has not yet been made the official general release version. I believe Java JRE 1.7 is basically still in beta mode and may be missing some abilities. The sub-version starting with
b is suggestive of a beta version.