You can do steps # 1 & 2 above.
You quote Java 1.4.2 which would be why LW won't stay open. The new versions LW will not run on anything less than Java 1.5
Also ... delete your LW prefs folder found here: /Users/your_username/Library/Preferences/LimeWire

Then download one of the nightly builds from the link on the following page: LimeWire cvs builds (4.13.4jum490)

Edit: hmm well if Jum's build doesn't work for you then that really is not good.

* Create a new account & use Jum's build in that. See if it works or not. If you need help setting up a new account let me know. Also, do you have LW cleared for your OSX firewall or is your firewall turned off? OSX Firewall settings for Tiger