Well I wonder why you blacklist those IPs. If they are dynamic IPs assigned by ISP to some users, their validatity will be shortlived before they get reassigned to another user...
It's quite uncommon to have these many IPs, but does not explain why you've got problems to connect.

But I see something interesting:
PROXY_HOST=www-cache.demon.nl
are you sure that this external proxy works as expected?
This may prevent you of performing requests to Gwebcaches, as this proxy may cache their data for too long (so that the IPs that get returned get too old).

I'm not sure you need such external proxy. The proxy settings are just there for those that absolutely require passing through a HTTP proxy to get connected to the Internet. It won't have any impact on your performance, but will just worsen your experience as GWebcache requests and replies should not be cached in proxies...

If Limewire works without proxy settings, then don't use such proxy with LimeWire... Your only interest would be to let this proxy enhance ("accelerate") your web browsing, as the web should be mostly static. But if this proxy has too long caching timeout, it will negatively impact your performance as Gwebcaches return non static data.

__________________
LimeWire is international. Help translate LimeWire to your own language.
Visit: http://www.limewire.org/translate.shtml