BleepingComputer.com: Limited Connectivity

Okay, I know we've all juggled this problem time and time again, but it's got me stumped this time.

I was in the process of fixing and cleaning a friend's machine of viruses and the XP Antivirus 2011 malware, which had disabled their computer and its connectivity.

I succesfully stripped the machine of all its malicious software and re-enabled the onboard NIC card, but I simply get Limited or No Connectivity. I've tried every trick I know of, and even some I'd researched, and I'm at the end of my rope so let's throw it to you guys and see if you've got an idea... Desktop is connected directly to the cable modem, no router.

Microsoft Windows XP vers 2002
Service Pack 3

From ipconfig /all:

DHCP Enabled: Yes
Autoconfig Enabled: Yes
Autoconfig IP address: 169.254.142.4 (Obvious problem)
Subnet Mask: 255.255.0.0
Default Gateway:
(No DNS listed)

Device is listed as working in Hardware Manager.
In event log, I get a note for "Source - tcpip" that reads "The system detected that the network adapter Broadcom 440x 10/100 Integrated Controller was connected to the network, and has initiated normal operation over the network adapter." and one for "Dhcp - Your computer has automatically configured the IP address for the Network Card with network address 000D5656E19D. The IP address being used is 169.254.142.4"

I've tried a /release and /renew and it doesn't seem to be able to renew. I've disabled and re-enabled. I've uninstalled, and reinstalled the device also, to no avail. I've tried running WinsockxpFix. Per someone's suggestion, I tried:
netsh winsock reset catalog
netsh int ip reset c:\resetlog.txt
in a command prompt. This had no effect, on reboot.

The modem and cable are fine, as I've simply plugged the same cable into this laptop for the purposes of posting this; it works fine while plugged in here, siply not the other machine. Does anyone have any other software ideas, or do we think the onboard NIC went bad on me?

I appreciate the help, and any suggestions or follow-up troubleshooting would be much appreciated!

Worth reading, http://www.click2web.com/169.php .

http://www.ehow.com/how_5963613_change-169-ip-address.html

And, yes...the possibility of hardware failure always is there. In the case of a NIC, such is easily/cheaply overcome.

Louis