Whenever Limewire is running, even if it is minimized in the tray, if I try running any movie files from any folder, the resolution of my computer goes crazy and goes to something like makes everything very big and fuzzy. I can't do anything and am forced to power down and restart. Has anyone else experienced this problem?

Try using VLC to preview instead; VLC - (click on link) _ (choose nearest mirror site) as it has in-buolt codecs & plays multitudes of formats including audio & is good for either A/V streaming & can also downld extra skins; http://www.videolan.org/vlc/features.html

See how that goes.