I really can't think how IIS Lockdown would make it lock up unless you actually removed the services.  I ran it here on a development server just to see what happened and didn't notice any change in the functionality of CW but at the same time I don't know that I checked the same options as you.  The tool should have made a log of changes made located in windows\system32\inetsrv\Oblt-log.log.  Open that file with notepad and copy and paste the results here if you don't mind.  I can compare what you did in the log and just make sure that it continues to function correctly after we select the same options.  There shouldn't be any "private" information in that log file but just give it a once over just in case.  If you would feel more confortable you're welcome to PM the contents instead.
 
One thing to make sure of is that whatever account you are using when you are running CW needs to have permissions to modify the misc IIS services such as IIS Admin, WWW and FTP service.  My guess is that there were probably some changes made to the permissions of the services.  Check out http://support.microsoft.com/kb/288129 while you're at it and verify that your account still has permissions to start/stop/write etc those services.  That page will also let you know how to change the permissions back to allow you to use the services properly as well.