MY SOLUTION (hope it works 4 U), no thanks AVI
 

Dear MacOS 9.2.x, i've tried everything and read all the FAQs and forum threads, here's what worked for me. I'm not too sure which one of these steps is the real solution, but you can try to:
1) if you wanna download limewire installer, do it from Explorer, not netscape
2) increase by 1000k the installer's memory (get info)
3) despite the error we all had, before launching limewire (after installation and before connecting on the net), pump up the memory size of the application (get info) to about 30000k at least
4) set your virtual memory on to 128 (i have 64 mg of ram)
5) Lauch limewire and hopefully you won't get a blank screen or a freeze. and obviously, try not to run other big application at the same time...

All the best guys ;)