A. It's my guess your Speedtouch is the problem. Port forwarding would be way to go.
Steps are .. and first step is one you must do first:
1.
Set up a static ip for Windows XP (click on linke)
2. Then
Port Forwarding for the Thomson/Alcatel SpeedTouch 546
Their sample images are a little odd, I see they have UPnP checked. Usually it's one or the other, however, see how it goes.
B. When you say XP firewall is not in use, did you disable it via the Control Panel?
In any case you can set it up to allow LW full access:
Windows Firewall - LimeWire
Alternate Windows XP firewall instructions:
1. Check the Windows system tray (usually located in the bottom-right corner of the screen, next to the time), and locate the icon associated with your security program. Right-click the icon to enter the settings.
2. Locate a section for adding exceptions for specific programs.
3. Add LimeWire as an exception (C:\Program Files\LimeWire\LimeWire.exe by default on Windows systems)