Wired network Late2009 not working

This one has me completely stumped.
I can connect the mini to my wireless network without issue. However when I plug into the wired network I recieve an out of range IP address (169.254.130.164).
Equipmet:
All verified 100% functional cat6 wiring.
DIR825 wireless router (DHCP enabled)
I have the MINI homerun directly into the DIR825
Testing:
Plugged another laptop into the CAT6 line that the mini was trying to use and recieved proper addressing and network connectivity
On the DHCP table inside the DIR825 it shows the WIRED macmini's (mac address) as having an address of 192.168.0.57
I have 15 device's on the network all working no problem
WIFI on the macmini works flawlessly; albeit on limited bandwidth.

Ok sorry for the late reply on this.
So I tried the PRAM reset to no avail. I did it multiple times as suggested.
So I:
downloaded 10.8 (from the App Store)
created a USB boot disk to install 10.8
formated the drive in disk utility
than proceeded to install 10.8I did not time machine the computer (I.E. reset any of my software or files, it is only running stock osx)
After installation was done I rebooted the machine and proceeded to PRAM reset once again.
After all of this I am still gett a ip address starting in the 169 range. If I unplug the ethernet line and plug directly into a MacBook pro the macbook will get a valid working IP address nearly instantly.
Is it possible the Mini has a bad NIC? is the NIC a daughterboard in this machine or is it part of the motherboard?

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