Check whether the problem is at your end. Just for the experiment, disable both XP & Avast firewalls. See if you can connect with LW. Give it plenty of time to try. If still no good, log into your Netgear & disable the NAT firewall (or set it to DMZ.) Try to see if it connects again. If not, then sounds like the problem might be your ISP blocking p2p programs or specifically LW.

Another option is to try this gnutella program: Phex to see if you have the same problems.