Hi Mark. Here's the answer from Pro Support
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It really does not matter how much memory is allocated for LimeWire, as long as you have at least 128MB RAM installed on your system. You do not need to do anything to the Apple Applet Runner, to get LimeWire working.
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So looks like an extension conflict would be the next area to try, since you already cleaned out all the old stuff and tried a fresh install.
Try turning off Fax extensions first.
btw--Apple modified the MRJ page recently
http://docs.info.apple.com/article.html?artnum=120209
Maybe reinstall MRJ 2.2.5?