LW runs fine with SP2. Try updating your Java to 1.5, but use the "Offline" installer of Java. You might also be wise to reinstall LW using the "Offline" LW installer. Also delete the LW preferences folder if you have one.
When you say it doesn't run, what do you mean? Give us some details about what happens when you open the program.
You still didn't provide the details we asked for. The problem could be your installations, it could be firewalls or anti-virus or similar utilities interfering, it could be your router/modem, it could be your ISP stopping you connecting. That's why we need details. We can't guess without any details. If you don't wish to supply details then search the forum for similar problems because we can't help you without details.
Did you configure your firewall so it allows LW full access (advisable not to have 2 active firewalls b/c they can interfere with each other);
Firewall configuration instructions (click on link)