First, the 169.xxx.xxx.xxx address is the MS way of showing you that even though you have 'get a ip address automatically' is on, the machine did not receive a response from the DHCP server. - Normal behavior.
Now, it could be that you nic card is not sending an arp broadcast request for an IP address. In that case, the DHCP server wouldn't even know you are there. This makes sense if you hard code an IP address.
The nic card is working with a hard coded IP but not with DHCP, I would first remove the stack/nic card from the machine through device manager and networks (my computer/properties and control panel). Reboot the system and let thm reload. Configure you IP stack as needed and see what happens.
If it still doesn't come up you may want to try getting another NIC and see if that works.
Goo Luck!