I think the BSD package can be found as an extra on the installation disk. Though I might be wrong.
BT do limit p2p use to some extent but never heard of this for dial up users.
OSX firewall: OSX Firewall settings for Tiger

Try these things:

* Tip: Purge the Downloads Queue!

* Delete your LW prefs whilst LW is closed; preferences folder is found here: /Users/your_username/Library/Preferences/LimeWire

* with dial up, it's sometimes best to wait some time to wait for it to connect. Even up to an hour. In fact, I'd recommend not connecting until LW has loaded properly. Do this: Go to LW's prefs (⌘ ,) then Connections & disable option. Then when opening LW, let it settle for 15 mins then go to menu bar, File menu & choose connect. Give it plenty of time to try to connect. Up to an hour.