Nice clear post! btw, there's a quick check if a firewall (or something) might be active--did you try the http://www3.limewire.com:6346/ test posted in Ursula's handy Tips and Tricks? Routers can also act as firewalls. Version 3.8.9 is out now too.

You shouldn't be always getting the source problem message if you download files that show many sources. Have you ever been able to download anything?