What I found:

Lime wants to create the directory ( folder ). It also wants the download directory to be a sub-directory.

The way I had it that wasn't working right was:
c:\mp3 (for shared files)
c:\mp3-downloads (for downloaded files)

The way it will work now is:
c:\mp3 (for shared files)
c:\mp3\downloads (for downloaded files) (*)

(*) directory created by limewire.

Anyhow, much easier for me to check and move the files.

SWJ