I can't find any info to suggest that your ISP is blocking p2p. Their Acceptable Use Policy (AUP) does mention that copyright infringement is in violation of the AUP but then so do most ISP's terms & conditions!
Home Telephone Company Internet Acceptable Use and Privacy Policies

In LW tools > options > advanced > firewall config. Change LW's listening port to something in the range of 49152 - 65535. Try a few different ports in that range & see whether you can connect.

Are you able to use any other p2p apps? You could try Phex, BearShare or FrostWire and see whether any of those will connect.

I can't find any info about your modem, apart from that it's a Motorola! Do you have the user guide there? Can you have a look to see whether there's any internal firewall info? Do you know whether the modem supports UPnP?