Have you actually "Connected" to the wireless network? In other words, have you run the wireless adapter's software, scanned for "Available Wireless Networks", found and highlighted the one that matches your router's SSID (network name) and selected the option to "Connect" to it? Once "connected", the wireless adapter should get its correct IP address by DHCP from the router and you should have internet access.
At the moment, the adapter is unable to access a DHCP server (the router) to get its IP address. Windows is allocating a default 169.254.x.x address, which won't work.