DHCP and Win7

[Jeff Wright]

Hector,

The 169.254.X.X address range is reserved for automatic private IP
addressing (APIPA). When your Windows computer is configured to get an
IP address from a DHCP server, but is unable to find one, the APIPA
service will assign itself an address in the range 169.254.X.X.

>From RFC5735:

'169.254.0.0/16 - This is the "link local" block.  As described in
[RFC3927], it is allocated for communication between hosts on a single
link.  Hosts obtain these addresses by auto-configuration, such as when
a DHCP server cannot be found.'

In order to really tell what's going on here, you will need to get
packet traces from the network where the server and the Windows machine
reside. Wireshark would probably be your best bet.

Regards,

Jeff