The 169.254.168.195 address is an invalid address and you have no default gateway defined. I must suggest you refer to my previous post and link as something is wrong with DHCP not assigning your adapter the proper information. If you have a firewall on you should disable it. You should also check Realtek for driver updates to this device:
Link Removed
Latest driver update as of today appears to be: 4/19/2012
When your computer is configured to get an IP address from a DHCP server, but is unable to find a DHCP server, the Microsoft APIPA service will assign itself a 169.x.x.x IP address, and checks for a DHCP server periodically. This indicates a problem with DHCP assignment to your router. You should enter the data manually to correct the problem once and for all.
Check the network adapter on settings on your other computer or assign the default for most devices:
IP: 192.168.1.13
Default Gateway: 192.168.1.1
Subnet: 255.255.255.0
DNS: 8.8.8.8, 8.8.4.4, 192.168.1.1
This is accessed by going to Control Panel\Network and Internet\Network Connections aka View Network Connections. If you do not comply there is no way to rule out DHCP assignment error which is probably why you have a APIPA IP address. See also:
Link-local address - Wikipedia, the free encyclopedia
If you can rule out DHCP assignment error, and know that this is NOT the cause of your problem, you need to consider the proposition that your wireless adapter is physically malfunctioning. You should attempt to connect it to other wireless access points and hotspots, with all of the settings I just suggested set to automatic, once again, to determine if it functions in other environments with different variables. Under my methodology, I am trying to rule out router configuration error before condemning your wireless adapter to the trash bin, as it appears to be.