Ok, that's rather what I thought. 169.254.xx.xx addresses are autoconfigure addresses; what an Ethernet adapter will have by default if it isn't getting an IP address by DHCP. This could be caused by a bad cable, defective port, or misconfiguration. Make sure that your router is set up to provide DHCP services; you'll need to contact AT&T for assistance with their router. The PC will also need to be configured to use DHCP. You say the connectivity LEDs are on, but try a different [known good] cable anyway. The networking troubleshooter in Vista may be able to correct a configuration issue on the PC.