The report of a Type 2 Errors usually means either you have an Extension conflict or that you have insufficent memory to run the application.

Have you installed any application that affects the standard Mac firewall. For example, I recently experimented with a package to control ports in the 4000+ range and had major problems across the whole firewall. These problems were almost completely eliminated when I uninstalled the package (I'm still searching for and eliminating odds bits of code down in root). Anyway, the moral is that, for most practical purposes, you should not mess with the standard Mac firewall. If you have, I recommend that you delete it and try Limewire again.

Alternatively, it may be that you have not assigned enough memory to MRJ 2.2.5. Make sure that you have the maximum allowable value which is 32000. To make the change, highlight the MRJ icon and from file menu select Show Info, then Memory. This allows you to reset the maximum value to 32000, but don't touch the minimum value. After this re-start your Mac and run LW again. If it still fails, it may be a virtual memory problem but that's another story.

BTW before downloading a new copy of Limewire, make sure you trash all elements of the version you are replacing. Use Finder to trash everything with Limew in the label and ensure a clean slate for each new download.