Make sure that the XP firewall's allowing LW (info in the link below).
User Cant Connect - LimeWire

If that makes no difference, try port forwarding for your router. The instructions are here
Port Forwarding for the Actiontec MI-424-WR
Don't forget to set up a static IP address first, or port forwarding won't work. There's a link to static IP setup in those instructions. LW's listening port, port in the 'manual port forward' box & port forwarded within the router should all be the same number.

Is that Java 1.3.2? That's pretty old...any reason you're using that particular version? You could try using this later version. Download the JRE offline installer & remove any other Java versions before you install this one.
Archive: Download Java 2 Platform Standard Edition (J2SE) 5.0 Update 11