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I assume that you have DHCP enabled in the router, and your laptop is working through the router properly?
If this is the case, your TCP/IP in your other machine is broken - and Winpoet probably had something to do with this. I recognize the "bogus" IP addressing you are getting, and it's not terribly easy to fix.
Go into Networks in control panel and remove ALL components. Reboot and your network card should reinstall. Then go into TCP/IP properties of the network card and set them up the same way the laptop's are. If this still doesn't work, you may have to reinstall Windows.
If anyone else has found a quick fix for that 169.254.xxx.xxx syndrome, please post it - I hate reinstalling Windows to fix a broken stack.
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