Yes, this is true. LimeWire versions up to 2.8 (I think) weren't able to parse that kind of queryhits. Recent versions should be able to handle them although LimeWire still doesn't recognize the pathnames and will consider the whole name to be a filename.

I don't know if LimeWire can download from Mutella, because it's been a while since I have seen a result from Mutella for the last time.