OH .. it didn't work? Did you try restarting via your installation disk? Choose from menu instead of using the installer ... to get to desktop.

Another alternative. Set up an alternate account, quite easy: Setting up a Test Account in OSX (click on link) & delete it from there.

I can't find any reference to me posting about my experience before. Pity I cannot remember what I did.

And no you won't be able to delete that file whilst LW is open. The issue is to make that file inactive from the system. It is somehow stopping the present operating system from deleting it, so if the computer is running under a different user account with different permissions or a different startup owner, etc. it might make it lose its power.

I didn't try the installation disk suggestion because I'm away at college right now and have the disk at home unfortunately. I did create another user account and tried that.

I wasn't sure how to find the file when under that name, so I put it in my shared folder when I was under my main account name, brought it up under the Test account, and deleted it.
I then started Limewire and I noticed that it did something different than what it does on my main account when I open it for the first time since reinstalling it. I've uninstalled and reinstalled Limewire numerous times, yet never (except the VERY first time I ever put it on here) did I get the screen that pops up where you click next, next, etc and choose your LW preferences and what you want shared, etc.
I did get this screen when I opened Limewire on the Test account, and the file was not downloading! I got excited, thinking it was gone, and switched over to my Main account, opened Limewire only to find the pest still in the downloads box trying to download....

(PS- thanks so much for your help... i really appreciate it)