Disk Utility on your computer is what you should use for repairing. If you repair from the instal disk, all permissions are set back to default without user permissions. Although it takes longer to boot up, a safe boot can be wise sometimes when repairing permissions. ie: hold down SHIFT key as you are booting computer until you see the apple icon. Then you will need to log in. Repair permissions with Disk Utility. What a safe boot does is turn off some unnecessary system items that might affect a repairing of permissions.

Do you have the latest Java installed? Check Software Update under apple menu far top left of screen.

I occasionally use a free utility program called iTool for various things including repairing permissions. I did once use Cocktail but it also caused me headaches.

Try setting up a test account & see if LW runs fine there: Setting up a Test Account in OSX (click on link).

You might also try deleting your old LW preferences: Deleting LW Preferences folder in OSX