Who is AOL using in your area for their cable provider - Time-Warner?
Try turning the power to the cable modem completely off for 20 minutes. Then hook it to the second computer and start it up. If it still pulls a 169.254.x.x private IP, you do have a Winsock problem on that computer and you should run this little application:
http://www.softpedia.com/get/Tweak/N...nSockFix.shtml
There is still a possibility that the cable provider does not support automatic MAC resetting - if that's the case you have to call to get it reset. Have you talked to an AOL "tech" about this yet?