Connecting with AirPort

I have recently updated my operating system to 10.6.8.
I am now trying to connect to my home network through AirPort, and I see the following comment on the system preference page "AirPort has the self-assigned IP address 169.254.242.87 and will not be able to connect to the Internet."
What does this mean and how to I correct it?
Do I need to update my OS further?
Do I need to update my AirPort Utility?
Thanks BP

kelmscott, Welcome to the discussion area!
It could be RF interference. KB 58543, AirPort: Potential sources of interference

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    Is it the kind of security I'm running? Should I try WEP or... none at all?
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