Anders:
first of all You should follow Charlie's advice "read the fine manual" (as I'm a newbie)
As far as I see..(range 169.254.yyy.zzz ) your windows machine is not raly "talking" with the dhcp server of e-smith, The first test to do is a simple ping from the win2k pc to 192.168.1.1 if you receive a reques timed out here is the problem....
... you could try to double check the tcp ip configuration of w2k pc and see if it is ok (probably is not ok)....wait....there is a win 2k command at command prompt type ipconfig, and you'll get your current ip configuration probably 168.254.170.23?
ipconfig with /renew option, will try to locate a dhcp server in the fisical network and if it finds it will get an ip address lease automaticaly.
this is true only if windows 2k is configured as follows
your w2k tcp ip properties tab should be configured to obtain an ip address automatically, in advanced options should say "dhcp enabled"
e-smith works just fine and, as Charlie says, has also a fine manual... search on it about configuring clients pc, let me see...
http://www.e-smith.org/docs/manual/4.1/configclients.htmlthe info is w95/98 oriented but the concepts should help you
The other reason could be hardware (nics or connections etc)
could be wrong at the e-smith which should have warned you about a hardware problems at installation time.
in this case check the cables, nics and drivers I think yours are fully supported by e-smith.
hope this help.. if not write again...
Alejandro