Re: Can anyone help me out hear
I don't really want to turn this thread into a help forum, but I can't resist posting a reply.
IP address which start 169.254 are link-local addresses. They aren't assigned by your neighbours home router or ISP, they are chosen by his PC. It decides on a number, broadcasts it on the local network to see if any one else is already using it, if not it sticks with that address. Typically it will do this if it can't see a DHCP server and it is configured to use an 'automatic address'.
If your laptop connects through his router fine and there is no problem at BT's end. The problem either lies with his PC or his router configuration (though this is less likely). Perhaps he typed his wifi key wrong and it can't connect to the router to get a DHCP response (typing a wifi key wrong won't always report an error). Perhaps his router's security settings are setup to only allow access from certain MAC addresses and his isn't recognised (for whatever reason). Perhaps he is running Windows (particulary Vista) and his winsock catalog or TCP stack has been corrupted (http://forums.techguy.org/networking/805788-ip-keeps-defaulting-169-address.html). Or ofcourse, it could be a hardware fault, probably with the PC's network interface rather than the router. There are numerous points of failure on a home LAN - I wouldn't put my money on any single one of the above, as they are all fairly likely - you might even be lucky and have multiple problems -one thing that can be ruled out is BT's side of the network, if you truly managed to connect via his router.
With regards to O2, it seems the problem passed my iPhone by.