169.254.97.248 is the hardware default IP for your NIC. It isn't detecting the network, or you don't have a DHCP server. Without knowing more about your config, I'll assume you do not have a router or server running dhcp, or that you are not currently running ICS. The best way to tell if you are running DHCP is to go to one of the machines that has a 192.x.x.x address. If it is a 98 box, right click on network neighborhoos and click properties. Choose TCPIP for your network adapter and click properties. On the IP config tab, it has a choice between Specify and IP address and use DHCP.
For XP, right click on "My Network Places" and choose properties. Right click on your network adapter and click properties. Choose "Internet Protocol" and click properties. Note wether it is set for Obtain or specify.
If you are using DHCP, the computer with the hardware default IP is not getting connected to the rest of your network.
If it is set to "Specify", you need to give a unique IP address to the PC with the hardware default IP.
If you need any more help, PM me.