I've had the exact same problem as listed above (OSX.1.5, Limewire 3.5.7, crashes on 'installing components' )
Just tried repairing permissions and nothing. Still crashes. BTW how are you updating Java? I go to software update and there's no listing for a Java update?

EDIT: Obviously I hit the wrong button and posted a new thread instead of reply. In a word, D'oh. This is reffering to the posts about Limewire freezing on bootup under OSX.1.5.