When I look download a .wmv vid file the file downloads ok, but when I go to view it a 'license acquisition' window comes up telling me I need a license to view the video. When i try to get the license, then the license acquisition freezes up to the point of 'Program not responding'.
How do I get past this? it's REALLY annoying and frustrating me.

Don't downld those little files which are generally porn. Those licence requests will try to connect you to the net. These are diallers, marketers & porn sites. See What you should know about WMA Files which discusses something similar. This topic has been discussed many times on the forum so if you search, you can find your answers. That's what the search button is for.

The next version of LimeWire will let you know prior to downloading if a WMV, WMA or ASF file is going to require a license lookup prior to viewing/listening.