Limited or no connectivity

[Killa-Eyez]

Hey there fellow members. And the message reads: "This connection has limited or no connectivity. You might not be able to access the Internet or some network resources. For more information, click this message.". I've been getting this message on my mothers just assembled PC and can't get internet to work. IP-adress stays 169.254.x.x. The PC in question (it's an old one);

AMD Athlon 1 Ghz
Abit KT7A Socket 462 (A)
3x 256 MB sdram dimm modules
Nvidia Riva TNT2 Model 64 32.0MB AGP
Creative Soundblaster 16 PCI
Realtek RTL 8139 C Fast Ethernet NIC
Running Windows XP MCE
Also running McAfee VirusScan 8.5i

List of things I've done:

-Ran commands in CMD such as;

ipconfig /flushdns
ipconfig /release
ipconfig /renew
netsh winsock reset

-Reinstalled the ethernet card
-Set the ethernet card to 10mbps/full duplex
-Changed the ethernet card's MAC adress
-Ran the Microsoft patch (KB884020)
-Ran the WinsockXPFix patch
-Left the modem offline forover 5 mins

Another thing I've done is changing IRQ's for the different cards I have, as I vaguely remember this also could cause problems back in the day. Set the bios to Yes for letting windows handle the IRQ's and tried setting it manually in the bios, setting the soundcard to IRQ 11 and the ethernetcard to 3 (both options advised by my dad). This would cause windows to reboot at loading the network status. If anyone has any other options I could explore, please! Mums hogging my lappie so I have 2 get this to work!

Edit: Also tried a different ethernet card (a new one from sitecom) with same procedures, still no luck. HELP!