Win Server 2008 won't use assigned static ip (uses 169. instead)

I cloned a vmware machine on vSphere client, which meant I needed to run NewSID or sysprep to change the SID. As newSID isn't available any more, I ran sysprep without checking the generalise option, this didn't solve the problem (inconsistent sid), so I ran it again but chose the generalise option this time. This solved the problem, but for some reason created another - the server won't configure the static IP address that I assigned to it - it uses a 169 address instead. If I choose to have it automatically assigned an IP it picks up the correct address. There isn't anything wrong with my network, the problem will be on this box.

I have quite proficient networking skills, but this problems eludes me. No other servers have this problem, just the cloned one.

From serverfault Mr Shoubs

• I carried out the manual TCP/IP stack reset here which seems to have done the job. I've never some across this before, just luck I found it so quickly.

  Richard : Recent (2008/Vista/2008R2/7) Windows versions can have a problem with older DHCP servers, there are various settings that can help (covered in MS KB, but don't have the right # to hand). But that doesn't appear to have been your problem.
  From Mr Shoubs