I used the same approach with installing 32-bit java last and it fixed the problem as with the previous Java 7 update.

Try uninstalling all versions of Java. Then install the Java 7_10 64-bit set to Run as Admin.
Then install the Java 7_10 32-bit set to Run as Admin.

Make sure all browsers are closed when uninstalling and installing the Java versions. Having your 64-bit browser open during installation might have been part of the problem. Also might be an idea to close down (log out of) any other accounts until you finish the installation.

For your user-account, thanks for letting me know. Which username would you prefer to keep? I can merge the two accounts into one, once I know which username you would like to keep. You can send me a PM if you would prefer.

I've been having a rash of "problems occurring" like this, so when I saw this screenshot you posted I decided to reinstall LWPE as well, and that seems to have resolved things for now. Thanks again.

(Irrelevant observation: If it truly is "possible for LimeWire to recover and continue running normally", then why doesn't it just do that? This strikes me as poor program design.)