i got it running just by installing j2re1.4.2_04 using the instructions on the sun download site, then doing only:

export JAVA_HOME=/usr/java/j2re1.4.2_04
export PATH=$JAVA_HOME/bin:$PATH

after that you follow the instructions posted by the previous person about java.sh. once java.sh is in /etc/profile.d you should be able to run the installation for limewire and have it work

at least thats what worked for me... good luck

also try checking java -version and using which java to see if anything is going wrong with the detection of the java path