Taken from http://www.limewire.com/support/faq.htm :
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Q: Does LimeWire have spyware?

A: No. LimeWire does not monitor or record any of your searching or sharing activities at any time. LimeWire will never include such a feature.
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Maybe he just confused it with Bearshare?
Got to admit that I haven't tried AdAware yet, though...