This solution would only work if you are having the error ONLY when the LimeWire installer is installing Java 2. You might try downloading Java 2 seperately, installing it, and then trying to install LimeWire again. Since Java 2 will already be installed, LW will not need to install it for you, thus circumventing the point of error. Go to:

http://java.sun.com/j2se/1.3/jre/

Download the appropriate installer for you OS, and try the LimeWire install again. Any luck? Let us know! :-)