This happens (in Windows too) if you don't get a DHCP leaseeth0:avah Link encap:Ethernet HWaddr 00:12:3F:14:95:F5
inet addr:169.254.7.234
For some reason (that I have written down somewhere) you get an address in the 169 range
I guess your net is in the 192.168 range. //Edited a typo/
I had this problem in XP about a year ago and it almost drove me nuts...
In your laptop open "Network" (Control Center > Network)
Roaming mode should be enabled - mark the connection and open properties. There is a box to tick for roaming mode.
If that does not help continue
As you have a working connection to your router (is it ADSL modem and router in one unit?) log in to the router and look around. You should see both computers connected. Make sure they are connected the same way (there may be things like DMZ which maybe does not have DHCP and.....)
This is for a wired connection.