Norton is turned off, but XP has it's own firewall. Also, do not run two firewalls at same time. It results in less security not more, also will have side-effects. Norton & XP firewalls will clash. For XP firewall, see
http://www.gnutellaforums.com/genera...wers-here.html
Oops .. you do realise don't you many schools & dorms now block p2p sharing programs? That might be your problem. I can see port 6346 is totally blocked, most likely due to the network firewall.

Try changing all port settings in LW & firewall to one between 49152 - 65535; a good one to try is 64049. ie: Go to LW's menu bar, Tools > Options > Advanced > Firewalls & change both connection & listening ports to one of those suggested. Then, go to menu bar, File menu, disconnect & then connect, give it plenty of time to attempt to connect.