Ok i have shared the folder, limwire cannot open file directory does not exist.
I created a new folder within the download folder and put a song in it. Limewire has the same error for that song as well.
File Cannot be found.
C:\LimeWireDownload\Song with a song in the folder doesnt work
however i tested the song in just c:\LimeWireDownload and the song worked fine.

This is shocking. I know a thing or two about computers and this shouldnt be happening.
My bet is to delete both folders and limewire and start again from reinstallation but then again i dont see how it will help if it occures again.