When a WIndows based system attempts to get an IP address from DHCP and can not, it auto-generates an ip address in the range of 169.254.x.y/16 (subnet mask of 255.255.0.0) and you see the message statting that you may have limited functionality. However, a router acting as a dhcp server that generates ip addresses 169.254.x.y/24 (subnet mask 255.255.255.0) does not have this issue and all the windows based systems have complete internet access.
For those using CISCO VPN to get into their work environment, this allows the computers to be connected to their corporate network via VPN and connected to their local network to get access to printers and such. Such was my case. Gone were the days of downloading to my laptop, disconnecting VPN, printing, the connecting VPN again.
The only problem was the our iPhones's, iPads, and iPod touche's could not get internet accsss. The iPhones could if Cellular data was enaled. And, downloading ping utilities showed that sites like "www.apple.com" and "www.google.com" and "www.yahoo.com" were all pingable. But, everytime we'd try to strictly use the wireless network, Safari, the App Store, iTunes on the apple devices wouuld not connect. Microsoft systems HAD NO PROBLEMS even though those systems were in the same subnet (169.254.x.y/24)
It appears that these apple applications on these apple devices are activly looking for 169.154.x.y addresses and assuming they have not internet connectivity when, in reality, 169.254.x.x.y/16 addresses are the problematic addresses 169.254.x.y/24 address sshould work perffectly well. They do for Microsoft Windows based applications (even SAFARI on WIndows has no issues).
