The 169 address means you are not getting an ip from your isp.

It does not mean your NIC is working properly though. You should make sure the NIC shows no yellow bangs in Device Manager. If not I would try to update the NIC drivers. If you can try another NIC to see if it works. Change the slot that the NIC is installed in if possible. Try another patch cable. Also just try and go from your cable or dsl modem directly to one pc and see if you can obtain a valid ip address.

Some stuff to try first.