I want to follow up, it has been 10 days since I turned off the ultrapeer capability. My LimeWire has not crashed since then. The LimeWire folks sort of pooh-poohed the idea when I presented it to them, but for me the proof is in the check mark: Disable ultrapeer capability!
Mine is not a modified install of OS 10.1.5. Applications are in their proper place. My drive is partitioned with 9 and 10 separated. I run Disk Warrior, fsck, MacJanitor and XOptimize regularly. I have so far had 3 kernel panics in over a years worth of use. I do not install a lot of junk, just major league apps, well, if you consider Microsoft major league (but I'm not going there, just trying to make a point).
Maybe when 10.2 comes out and Java finally works right one of these days, LimeWire will happily run in the background while we do all the other things we want to do. For now it's still a tradeoff though. Yes, I have eliminated the crashes, but I still have to deal with frozen mollasses like browsing speeds if I surf while sharing. Not good. Anything I can turn off for that?