I downloaded my first video over the weekend and it downloaded in a Xvid format, after about 15 hours of frustration,

I finally found ConvertXtoDVD, what a nice program! You may want to try it when you can finally download a video. Their browser is really easy to work, it took about 35 minutes to convert the video into a dvd format and then it automatically burned the disc! Took about another 1/2 hour to burn the disc, and the quality is great. I tried the free trial first and it burns a message into the video, but I wanted to make sure it would work okay before I plunked the $40 bucks down. Now, I can't connect to Limewire from another computer within my home and I'm having the exact same trouble you are, so if you find out anything I'd appreciate it you passing it on to me and I'll do the same for you. Good luck!