Things i would suggest:
1. Download the OFFLINE version of Java (do not install yet!)
Java Downloads for All Operating Systems - Sun Microsystems (about 15 MB download size, 2nd option which is the OFFLINE one)
2. Download the OFFLINE version of LW
http://www9.limewire.com/download/LimeWireWin-full.exe (do not install yet!)
3. Go to Start menu -> All Programs -> LW -> Uninstall.
4. Using your Add/Remove Programs control panel, remove all versions of Java.
5. Run either or
both of these utilities: (a)
Crap Cleaner, &/or (b)
Microsoft Windows Install Clean Up.
_ (For CCleaner, click the Registry tab to use that function.) 6. Reinstall Java using the above version. (You will probably need to reboot after reinstalling Java)
*Windows 7 & Vista users it is recommended you Right-Click the Java installer & choose 'Run as Administrator' before installing. (This can also help for other Windows users such as Windows XP.) 7. Reinstall LW using the above version.
8. If still problems, delete the LW preferences folder whilst LW is closed, found here:
http://www.gnutellaforums.com/window...tml#post183932 9. If still issues, try steps 5 and 6
here; re: Run as Administrator & maybe Change compatibility mode.
10. Tip: Purge the Downloads Queue! (click on blue link) 
BTW since you have updated your LW & deleted the LW preferences, the LW preferences folder will no longer be called .limewire, it will be called limewire & is found in a different location, see
Deleting your Limewire Preferences folder.
(Make sure to click on the Registry tab on left of CCleaner to scan & fix issues. Unused Extensions, Obsolete Software, etc. are things which can affect operation of Java & other programs. CC gives option to backup registry just in case of problems. You can use first tab above registry to safely clean up other things any time. Most technical forums give thumbs up to using CCleaner above all other registry cleaners!)
.