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a 169 IP address is a place holder for when windows does not gain an IP address from a DHCP serrver(in most cases a router)
Most home networks that are connected to a router, have the computers set to obtain IP automatically, during boot and or during release and renew, it looks for a DHCP server. If it does not find one, it makes up an IP address starting with 169 and mores on.
What you rebuilt the TCP/IP stack yet?
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