Here what I did...

First, the "delete-the-pref-folder" advice did nothing for me.

Steps:

1) Launch Limewire. See the new "Tips" dialog box? DISABLE the show-tips-at-launch checkbox. Then click "ok" and hope you never see that box again.

2) Go to LimeWire Preferences and disable the auto-connect at launch option.

3) Quit Limewire. Then relaunch Limewire. Then manually "connect" from the menu. Voila!

I surmise that the new Tips box is interfering with the application's ability to connect!

Limewacko