Macbook choses 169.254.x.x when the range is really 192.168.2.x
The problem was I didn't have DCHP enabled on the Airport, but when I did, the internet wouldn't work at all on all devices, when with it disabled, it worked on some.

So I contacted both my ISP (Bell/2Wire) and Apple. I had to setup the Airport to use PPPoE and I received that information over a call with my ISP.

The quickest route was to just reset both, call my ISP for PPPoE and reconfigure both.