Rob:
I think in your screen shot in the Material's dialog box, your Preview is set to Internal Engine. For LightWorks, set it to LightWorks Rendering Engine, then start by clicking the "Match with Internal Engine" button.
For clearer screen shots, rather than showing the entire screen which makes it hard to read, try moving the relevant dialog boxes closer together and capturing just part of the screen. The Mac comes with a small application named
Grab, which gives you different options for screen captures.
David