Lithunwrap is still available and free, Ultimate Unwrap is far more featured. The developer just no longer supports lithunwrap as they have their newer flagship that gives 'em a bit of cash. You'd need to find lithunwrap on another site that hosts it (check out the modelling links thread, you never know, a link maybe there)
As for in Lightwave, I've seen no evidence of a 'proper uv mapper' (I didn't see it, but it may still have one) - it seems to only give you options for 'planar, cubic, spherical and cylindrical' UV maps in the materials - as for custom you'd probably would have to go to external applications. But if I were you, I'd google 'UVMapping in Lightwave' or something along those lines, if nothing shows up then I'm right, it doesn't have one.
But that's no biggy, a lot of us do UVMapping externally (besides you're a Lightwave user, I'm sure you're use to swapping between more than one app to do certain things.
) I tend to model in Hexagon 2 or Silo 2 (replace with Lightwave modeller), open up lithunwrap, uv map and then texture in photoshop and then import into Cinema 4D (replace with Lightwave Layout) for the rest of the business.
If you're not willing to purchase and lightwave is incapable, lithunwrap I would say is your best alternative - I found it really easy to get results with and has prepared me for the real thing (I'm learning to UV Map properly in Hexagon 2, so I can cut out the middle process)
If you want, I need to UV map something tomorrow, shall I walk you through the process in lithunwrap if it'll help you understand it and get you started? (I'll also do a search in google for the application download)
I shot the sheriff