Problems starting network in SuSE 9.1

Have installed SuSE 9.1 on a IBM Netvista. It works perfectly well
using pppoe to connect to terra services thru a router cisco 800. This
router will act as a dhcp and provide a ip address when not using
pppoe and just typing ipup eth0. This happened with RedHat 9.0.
However, after installing SuSE 9.1, when activating eth0 with the
command ifup eth0 get the following message (same when trying to
activate the device when booting as I see in /var/log/boot.msg):

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acastroc:/etc/sysconfig/network # ifup eth0
eth0 device: Intel Corp. 82801BA/BAM/CA/CAM Ethernet
Controller (rev 01)
eth0 configuration: eth-id-00:02:55:ca:a8:76
ERROR: Error while excuting:
Command 'ip route replace to 169.254.0.0/16 dev eth0' returned:
RTNETLINK answers: No such device
Configuration line: 169.254.0.0 - 255.255.0.0 eth0
------------------------

I do not recall entering the ipaddress 169.254.0.0 at any time. Can
anyone help me with this?. I have been looking for a solution with no
success.

Thanks in advance for your help.