This is the behavior when a duplicate IP is detected. Windows removes the address assignment (0.0.0.0). It doesn't try to pull another address via DHCP, alternate config, or automatic. User intervention is required.
The DHCP client has obtained an IP address that is already in use on the network
Symptom: When trying to renew IP, you may get this error "An error occurred while renewing the interface Local Area Connection: The DHCP client has obtained an IP address that is already in use on the network. The local interface will be disabled until the DHCP client can obtain a new address."
Resolution: 1. Release and the renew it.
2. Clean the internal DNS and WINS records.
Refer to case 083104LR
Try this method.
1. Unplug the router
2. Shutdown the PCs
3. Restore power to the router
4. Restore power to the PC with the conflict. It should now be able to
pull the address from the router.
5. Restore power to the other PCs. If one of them had an old lease that
was causing the conflict, the renewal request will be denied and it will be
able to pull a new IP.
The easiest thing that I've found to troubleshoot this is a new network adaptor. They're about $15 almost anywhere you look - and they save endless aggravation while trying to figure it out.