The IPD tries to find a DHCP server. If it does not find a DHCP server, it assigns itself a ZeroConfig address (what it calls the B class IP). That works if the computer is also on ZeroConfig and the subnet is set correctly.
If the online / offline was blinking, it indicates a network problem.
This can potentially be resolved by -
- power cycling the IPD,
- unplugging / pluging the ethernet cable back in,
- other ethernet problem solving actions.