My this is a busy one! It appears as though you have tried most of the common troubleshooting techniques but to no avail so I really have no idea what the problem is, but I will offer a few things that might at least narrow it down. :) First off no one seemed to find it odd that release/renew causes a socket error? In the event a Win box cannot find a DHCP server to assign it an adress it should A.Timeout and say so, or B. Auto-assign itself the gay 169.x.x.x thing. I think re-installing all your netowrk components would be a good place to start. Also because you are on a hub, why not set both machines to static IP's (dont worry about your internet for the time being) within the 1918 range(aka 192.168.1.1 & 2) and try pinging between the two machines, this way you can at least see if your nic is working right then worry about your DHCP problem.
-Maestr0
