Dumba$$ solution, duh!
 

Kept trying all the suggestions, then read where someone re-checked their gnutella file and it was still the old one. I did the same and, sure enough, it was the old one. Deleted and installed the new one again, same problem.
Then captain dumbass finally realized he needed to close Limewire (be sure and exit the program completely - make sure it's not running minimized in the lower right.) THEN remove the old gnutella file and insert the new one.
Still slapping myself in the head over this one - but at least I'm listening to newly downloaded music while abusing myself!:cantseeyou::shoot::dance: