ADKR,
The "limewire" folder is the folder that contains the settings for LW. There's not a folder called "Settings". I think you may have gotten confused. That's pretty common around here. I'm confused most of the time
.
When you click on the link to the hostiles list in this thread:
http://www.gnutellaforums.com/showthread.php?t=53973, you'll be prompted to d/load a zip file. Save it to where ever("My Documents"), unzip it and there'll be a document file called "hostiles.txt". Copy or cut and paste that file into the "limewire" folder you described(C:\Documents and Settings\YOUR_NAME\Application Data\Limewire) and that's it. Next time you start up LW the list will take affect. You don't need to create any other folders or files.
You need to be using LW 4.13:
http://www.limewire.com/english/content/beta.shtml