|The unpredicted and unwelcome appearance of the 169.254.xxx.xxx IP address, together with loss of internet connectivity, often indicates something I see often called "corruption of Winsock" and the "IP stack" - whatever those things are. At least I know you will be unable to connect to the internet, or even your ADSL modem or local network router until you get the problem fixed.|
To do that Google things like [repair Winsock] or [reinstall Winsock]
Look here for more:
Since the 169.254.xxx.xxx addresses are also assigned when DHCP servers are unavailable and the TCP/IP is set to get IP addresses from DHCP, then the assignment of this address type can indicate connectivity problems, rather than Winsock and TCP/IP stack problems.
Before messing with those things, better to try to make absolutely sure that you have physical level connectivity with the device which is supposed to provide the DHCP addresses. (A missing light on the modem, or some other test which indicates that the modem is not connected to your ISP might be a clue.)