Dave, the address was actually 169 (typo on my part) but I suspect the same conclusion. My primary system is a Dell with Vista Ultimate while the other laptop has Windows XP Home Edition with Sevice Pack 3. I even tried definig the IP address explicitly since I reserved 192.168.0.192 for the Sony, but still nothing (I didn't know what Gateway to specifiy on the Sony in his case, so that may be the issue).
Still, the DIR655 should assign the Sony an address and then connect. When I check the Sony's net adapter, it says its connected though I can't ping sucessfully frm the Dell to Sony, or Sony to Dell (or 655 for that matter).