You may/may not have the most recent Java for OS9.2.2 which is MRJ 2.2.6 see:
http://docs.info.apple.com/article.html?artnum=120209 If you're going to reinstall LW, it might be an idea to make sure you've deleted the previous preferences. Search your HDD for 'limewire'. In Prefs there's a file called .limewire If these suggestions don't solve the problem get back to us.
You said you hadn't used LW for some time. Do you still have incomplete files left over. The date for these may have expired (you can set how long to keep incomplete files for in your LW menu Tools-Options-Saving prefs.
I never used LW3 but did use LW2 where the prefs could occasionsally b/c corrupted or just needed to be refreshed.