hey man i got the same problem...it seems common but i will tell you some things i have tried......
DELETE YOUR PREFERENCE FOLDER
REINSTALL JAVA AND LW
CHANGE PORTS
CREATE A NEW WIN XP ACCOUNT
DELETE AND REINSTALL FIREWALLS
i have tried everything man i dont know whats up with it... but if i get mine to work i will let you know what i did cuz we got the same problem