If its happening with multiple machines, verify that the DCHP server isn't acting as an active game server. I've seen this before and it turned out that all the game traffic was inpeeding the clients' DHCP resolution leaving them off the network until we gave them static IPs.
Originally posted by Leb_CRX I work at the McDonalds of IT, tech support and I see a lot of issues with 169, usually a powercycle fixes it, if not sometimes reinstaling TCP/IP (depending on O/S) does it.
That link to the software I pisted above will fix the TCP/IP system and resolve these problems in every OS from 95 to XP. It is easier to run than to reinstall. Just an FYI if you want to play around with it. I can get you a link to the software writer as well.