Do you have other Java versions still on your computer (besides the 1.5.0_11)? If you do, remove the other versions.
Have you used older versions of LW in the past? You could have a preferences folder in the old location of C:\Documents and Settings\your username\.limewire...if you have that .limewire folder then delete it.
Try changing compatibility. Right click on the LW icon on your desktop > properties > compatibility. Run in compatibility mode for Win 2000 or NT.