This paper presents results of an all-sky searches for periodic gravitational waves in the frequency range [50, 1190] Hz and with frequency derivative ranges of [-2 x 10^-9, 1.1 x 10^-10] Hz/s for the fifth LIGO science run (S5). The novelty of the search lies in the use of a non-coherent technique based on the Hough-transform to combine the information from coherent searches on timescales of about one day. Because these searches are very computationally intensive, they have been deployed on the Einstein@Home distributed computing project infrastructure. The search presented here is about a factor 3 more sensitive than the previous Einstein@Home search in early S5 LIGO data. The post-processing has left us with eight surviving candidates. We show that deeper follow-up studies rule each of them out. Hence, since no statistically significant gravitational wave signals have been detected, we report upper limits on the intrinsic gravitational wave amplitude h0. For example, in the 0.5 Hz-wide band at 152.5 Hz, we can exclude the presence of signals with h0 greater than 7.6 x 10^-25 with a 90% confidence level.
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