Ok let's see....
The Java you are running version 6 update 1 has some sort of problem with some set ups, so I would suggest rolling back to 5.11 using the JRE offline version Java SE Downloads - Previous Release - JDK 5

When you deleted the .limewire folder did you also look for the LimeWire folder, they are 2 seperate folders...The .limewire was for the older versions and the LimeWire for the newer...
Follow this thread to the end, it will explain further...
Fixes for Limewire when LW isn't operating as it should

If there is still no difference try right-clicking the Limewire icon and going to properties and change compatability setting to Windows 2000. (but only if you're using Windows 2000 or later.) Somebody reported changing to Windows NT compatibility fixed their problem despite not using that operating system version.

Right-click on the Limewire icon on the desktop and click on Run as. Then it should come up showing the current user and then switch it over to Administrator. (but 'only' if you're the admin of your comp.!)

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