Well you can tell a lot from reading these responses...
I have been dealing with the same issues since updating to SP2. And only one other person noticed the same thing, it seems the DHCP Server isn't working right, or not compatible with something. I have trekked all over the net searching and following every thread.
Many say it worked for me and this and that. Well not here.
The winsocksfix doesn't work...I resetted TCP/IP which microsoft says TCP/IP cant be uninstalled and installed so this resetting of TCP/IP is how they achieve the same action.
The regpatch didn't help.
What I have noticed though, is DHCP isnt working so XP assigns this alternative IP which is how XP knows to display 'Limited or no connectivity'...when it see's that IP a flag goes up and we have a warning.
Though surfing the net with this warning present, my surfing didn't appear to suffer...I went to some sites to benchmark dloading of 200mb files to see xfer rate, and I was doing 378kb /s using a DSL modem.
Manually configuring a static IP works! But really all that is really doing is being as that other address isnt used a flag doesnt go up.
So using 192.168.1.x just lets XP know everything is normal.
BUT, during my escapades in trying to resolve this issue using the winsocksfix and the regpatch and resetting tcp/ip and so on, at one point my surfing capabilities suffered greatly.
Going to google.ca would 50% of the time result in the page could not be loaded...and going to other big pages with java, a lot of the buttons wouldnt load so you had to refresh so that more data would get cached till you could get all the components on that page.
Uninstalling SP2 is a big mistake as you will be exposed to spyware and trojans and virus' that will exploit security vulnerabilities. SP2 patches these security holes.
Besides that isnt a solution, that is avoiding the problem.
My advise, don't play with these winsocksfix and registry patches and tcp/ip reset methods. Don't muck about because nothing is wrong except Microsofts own DHCP server. Just manually configure a static IP.
Right click on your NIC and go properties...select the tcp/ip internet protocol and go properties...on the general tab change the obtain ip address automatically and enter 192.168.1.2 or 192.168.2.2, either is fine, then the subnet 255.255.255.0
Thats it, dont go nowhere else close these and restart so things will be flushed and cleared and surf away.
Go to some broadband ISP site and go to technical support and do a speed test. just to verify everything is okay.
Even if you didn't make a static IP, and your connection warns the 'limited or no connectivity' message and did this speed test, you should find your service is not impaired.
But because DHCP is not working, it's not assigning an IP address, and if one doesn't get assigned then it uses the *damaged line* IP address of 169.254.216.51 and a subnet of 255.255.0.0
Its simply a reflex...simple logic...if DHCP doesn't assign an IP address then it must not be able to communicate with the modem...so the modem or cable must be damaged...but no, not the DHCP itself.
Done!