well in the absence of a DHCP server in which to obtain IP,Subnet Mask addresses Windows assigns the default 169.xxx.xxx.xxx value. The release/renew will always fail unless you A: manually assign an IP Subnet mask address [DNS to] or B: obtain them from a DHCP server [such as from your ISP or a DHCP server on your LAN].
Now you mention that your LAN connection was tested and verified I'll take that as using ping and pinging another computer and the results came back with X ms. The TCP/IP auto discovery of IP /DNS requires the option B mentioned above[DHCP server]. If you disable the auto discovery and assign one of the private IP classes of IP addresses 10.0.0.0 - 10.255.255.255 or 172.16.0.0 - 172.31.255.255 or 192.168..0. -192.168.255.255 with the appropriate subnet mask for each class [255.0.0.0 for 10.x.x.x or 255.255.0.0 for 172.x.x.x or 255.255.255.0 for 192.168.x.x] and assign the DNS [gotta have a DNS server either your ISPs or your own] those settings will "stick".