Thanks for the link sjshipper.

If the Mac folks want to try the equivalent of "resetting the computer", just go to System Preferences->Accounts and create a new Admin user http://docs.info.apple.com/article.h.../en/mh168.html This allows you to test without touching your existing settings.

Check the "Allow User to administer this computer" in the password tab to make the new account an Admin account.

Log into the new account, run LW from there, and see if that makes a difference. If it does, then the problem rests in the settings in your usual account. If the problem continues, at least you know that to look outside your Mac for the solution.

(you can always delete the new account from the System Preferences, and your Mac will be back to its usual state)

I tried your suggestion and the problem was fixed. So now i can run LW from the new account but still having problems with the old account. How to fix the old account? I'm running on MacBook Pro using Airport.

This problem with no connecting only happens on one user on the Mac. There are three other users on the same computer, and they can search fine. I deleted LW on the account of the one user having troubles and reinstalled it, but this remains a problem. I don't think the removal of the program was complete though as on the fresh install, all of the shared files from before were then in the library.