How to solve iPhone 4 WiFi DHCP problem?

I just tried for DHCP but it’s not working and I am having strange issues with WiFi networking and photo syncing. It cannot obtain DHCP requests. Just defaults to the 169.x.x.x address. What all I can do is that I can make it work by manually configuring IP stack, but wondering why DHCP is failing. Running Linksys WRT110 router and all my other devices, PS3, Xbox360, laptop, iPhone 3GS no issue. Please help so that I can fix it soon?

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