Had you changed the location of your saved folder from the default (C:\Documents and Settings\your name\Shared) to something else?
If you've somehow deleted your preferences folder that's ok...you'd probably have been told to do that anyway
You'll have to reset things within options manually.

If things don't get back to normal for you, try deleting the preferences folder again while LW is closed(see points 2 & 3 below, if you've only used recent versions then point 3 alone is probably enough)
Fixes for LimeWire

That will revert everything to default, including the saved folder location. But again, you'll have to go back through tools > options & reset your preferences.