LimeWire does freeze alot. At least for me. And I have no idea why. I just reboot and start over.
Are you using Norton AntiVirus? When I used it while running LimeWire, I would get the weird-squiggly-cursor when it froze. You should disable Norton while using LimeWire. Then after you quit LimeWire, re-run it to scan any downloads.
Just a thought.
Good luck.