Its good that you have SKIP Rearm checked,which is handy especially when you have to attempt image creation multiple times.As for 169.254.x.x IP under WINPE,its either NIC drivers for WINPE or DHCP latency which is causing the issue.The solution is to add the ipconfig /renew command in the associated batch file.
On the Ghost server navigate to ,
C:\Documents&Settings\All Users\Application Data\Symantec\Ghost\Template\Common\"Winpe-You-Use"\Ghost\
I assume the server is either XP or 2003 since you are migrating to WIN 7 .Else the below path,
C:\Program Data\Symantec\Ghost\Template\Common\"Winpe-You-Use"\Ghost\
Right click Start.bat->Properties->Uncheck Read Only .Open the start.bat with Notepad and add the ipconfig /renew command after the line cd\ghost.Also include ping 127.0.0.1 after the ipconfig /renew line for delay.Save and Run the task again using the same WINPE template.
This is cleary a driver thing and AHCI mode is totally irrelevant.Check if the machine uses UEFI for BIOS which is the next important thing as the created image will be useless,if the machine uses UEFI.
Steps to check for UEFI->Disk management->Disk 0 ->Right click->Properties->Volumes Tab->Partition Style.
If MBR you should be good.If GPT UEFI is in place and contact support to obtain the latest 64 bit Ghost patches.
Note:Was in a hurry .Excuse typos.