Yeah, if you have that 169.254.x.x address, it means that you aren't able to connect to a DHCP host. Windows automatically assigns an address in the 169.254.x.x range. If you don't know if it is set for Static or not, then it is Dynamic.... you would know 100% if it is static or not.
Again, have you made ABSOLUTLY SURE that the drivers you have installed for that NIC are COMPATIBLE with a 64 bit operating system? Note that a 32bit driver is generally NOT (have to say generally not, because my experience with XP 64 bit, LOTS of my stuff wasn't supported with 64 bit drivers, but ALL of it worked on XP 32 bit....) going to work with a 64 bit OS.
I would suggest trying to re-install the drivers (certified 64 bit OS drivers), or perhaps try another NIC if you have a spare PCI NIC (64 bit compatible of course).
In another note.... When you connect to the internet, what is the process by which you do that? It sounds like you don't have yours set up to be an 'always on' connection..... Do you have a special application you have to start on the computer to connect, or what? You should be able to connect the router's WAN port to the modem, and set the router up so that it is 'always on'..... then all you have to do is start up the computer & web browser...