Ethernet self-assigned 169 IP address 10.4.11

Suddenly and without warning my old G5 running Mac OS X 10.4.11 lost connectivity to the internet. I booted one morning and saw the dreaded 169 IP in the Network tab of System Preferences. Oddly enough when I boot from HARDDRIVE2 (same OS) in the same G5 everything's OK and I have internet. Booting from the main drive, HARDDRIVE1, yields nothing but 169 frustration.
Here's a list of what I've done to troubleshoot:
- Rebooted the modem (CenturyLink Actiontec C1000A)
- Rebooted the G5
- Trashed /Library/Preferences/SystemConfiguration folder and the two files within, NetworkInterfaces.plist and preferences.plist
- Determined that the ethernet cable is working properly
- Determined that all four ports on my modem are working properly
- Used Network Setup Assistant to obtain a 192 IP
The genius at my local Apple Store can't figure it out and Apple Tech Support won't talk to me because the OS is too old. You're my only hope, Obi-won.

Is this a cable connection?  I read yes.  I'd define a new location for you connection in preferences.  ( seems like you must have done that. )
This is for wifi, but should be the same for cable.
This happens after applying Security Update 2008-06.
Another thing that you could try it is deleting or copying to desktop the preference files for networking.  Mac OS will regenerate these files.  You would then need to reconfigure your network settings.
http://discussions.apple.com/message.jspa?messageID=8185915#8185915
http://discussions.apple.com/message.jspa?messageID=10718694#10718694
fyi:
If Tiger has a working ethernet connection and configured to use dhcp, but doesn't find a dhcp server, Tiger will generate these addresses:
   ip address: 169.254.193.199
   mask: 255.255.255.0
Robert
=======================================================
I suggest that you try pinging Google.com.
Macintosh-HD -> Applications -> Utilities -> Terminal
# press return to run the command.
# settings for you communications port.  en0 is the ethenet cable port
ifconfig
# gateway address
netstat -nr | grep default
mac $ ping -c4 google.com
PING google.com (64.233.187.99): 56 data bytes
64 bytes from 64.233.187.99: icmp_seq=0 ttl=245 time=177.617 ms
64 bytes from 64.233.187.99: icmp_seq=1 ttl=245 time=251.899 ms
64 bytes from 64.233.187.99: icmp_seq=2 ttl=245 time=169.291 ms
64 bytes from 64.233.187.99: icmp_seq=3 ttl=245 time=250.119 ms
--- google.com ping statistics ---
4 packets transmitted, 4 packets received, 0% packet loss
round-trip min/avg/max/stddev = 169.291/212.232/251.899/38.894 ms
mac $ ping -c4 64.233.187.99
PING 64.233.187.99 (64.233.187.99): 56 data bytes
64 bytes from 64.233.187.99: icmp_seq=0 ttl=245 time=176.723 ms
64 bytes from 64.233.187.99: icmp_seq=1 ttl=245 time=247.889 ms
64 bytes from 64.233.187.99: icmp_seq=2 ttl=245 time=176.890 ms
64 bytes from 64.233.187.99: icmp_seq=3 ttl=245 time=244.623 ms
--- 64.233.187.99 ping statistics ---
4 packets transmitted, 4 packets received, 0% packet loss
round-trip min/avg/max/stddev = 176.723/211.531/247.889/34.744 ms
mac $
Analysis: If you cannot ping Goolge.com but you can ping 64.233.187.99, then you need to enter you dns address.  For some reason Mac OS X sometimes doesn't set the dns.  You can set it manually.
Try pinging your router.
mac $ ping -c4 192.168.1.1
PING 192.168.1.1 (192.168.1.1): 56 data bytes
64 bytes from 192.168.1.1: icmp_seq=0 ttl=255 time=0.958 ms
64 bytes from 192.168.1.1: icmp_seq=1 ttl=255 time=0.950 ms
64 bytes from 192.168.1.1: icmp_seq=2 ttl=255 time=0.955 ms
64 bytes from 192.168.1.1: icmp_seq=3 ttl=255 time=0.984 ms
--- 192.168.1.1 ping statistics ---
4 packets transmitted, 4 packets received, 0% packet loss
round-trip min/avg/max/stddev = 0.950/0.962/0.984/0.013 ms
mac $
Try pinging your dns server  8.8.8.8 or 8.8.4.4

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