the 169.254.x.x address is the default address of the card and is the range all non commuicating cards set themselves to when there is no active connection available.
Are you using a straight cable to connect up the pc or a cross-over cable.
With a router unless it has auto-detection of cable type it will default to using straight cables (white-orange,orange,white-green,blue,white-blue,green,white-brown,brown is the way a straight cable is connected )
try pinging 192.168.0.1 ( this would be the default gateway )
also try pinging 10.0.0.1 as this is a standard ip range setup for internal lan use.
try powering off the unit then powering on with the reset button held in ( it may do a hard reset back to factory defaults ) also try this holding reset while you turn off.
Reading the troubleshooting from the manual it sounds like its more a cable problem than an addressing problem its looks like 192.168 is all you can configure.
But if its not that post back and ill rack my braincells a bit more
