Wi-Fi self-assigned IP address and won't connect to internet?

Hi guys,
Hoping someone can figure this one out for us as we're all starting to suffer from Wi-Fi withdrawal symptoms!!!!
We are using iMac OS X 10.7.5. We have an ethernet connection coming directly into the iMac from the vessel's server (working on a cable laying ship) and can still gain access to the internet on the desktop itself.
Up until this afternoon everything was working as per usual (iPhones sharing internet through network created on iMac, this needed reset roughly every 15-30 minutes in order for it to allow devices to access internet). But then all of a sudden nothing can connect to the Wi-Fi network. There are very short periods (5-10 seconds every 20-30 mins) where connections are made then drops out again. Have tried several different methods (renew DHCP Lease, create new location, etc) but nothing seems to work.
Then I noticed that our Wi-Fi had a Self-Assigned IP address (attached a screenshot below):
If anyone has any suggestions or ideas on how to remedy this problem it would be much appreciated, cheers .

Can your MacBook connect to any other Wi-Fi network or just not the one provided by your AirPort base station?
Was it able to connect before or has it never been able to connect to your network?

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