Sounds like the on-board NIC may either be defective, or confused.
Have you tried resetting the motherboard BIOS?
I've also seen a few integrated peripheral issues that went away after a complete shut down with power removed from the system for a few minutes.
Again, as far as the link light is concerned, you don't need an OS for it to show a connection unless somebody cheaped out somewhere and the hardware actually requires properly functioning drivers to perform it's full feature set.
Have you attempted to run the equipment under Windows with proper driver support? It wouldn't even require an activated Windows license to test things out.