Thanks for your write-up. I'm glad you got it to work!
It looks like I didn't cover the 'favor DHCP' flag when I wrote the network troubleshooting page. Hopefully I'll find some time to do some experiments with my HL2 and update the wiki accordingly.
I don't think 'favor DHCP' needs to be on if you haven't set a fixed IP address, but once you have, it will need to be on if you want it to use DHCP. Maybe Steve can clarify.
It does look like the LEDs did tell you the issue was with address management, i.e. that the HL2 was online and was using the APIPA address.
At that point, assuming the HL2 was connected to the host via a router/switch, I would think only one-way communication would be possible. The HL2 probably could see the incoming broadcasts of the discovery protocol and probably sent a reply but that reply probably didn't reach the host running the SDR application because the router/switch wouldn't deliver that reply to the host.
I have used APIPA a lot with the HL2 directly attached to a host, and it works because there is no router/switch in the loop so there was nothing to intercept the reply. For it to work correctly though, you usually need to go into your operating system's network config GUI and tell it to not use DHCP on that link/interface but instead to use 'link-local' addresses.
In my opinion it's a good idea to use a direct connection so HL2 has a dedicated/isolated path to the host, but most people don't do this. As mentioned in the troubleshooting page, the HL2 doesn't have a lot of space to buffer packets, and that can be problematic in some high-traffic scenarios.
And it's probably a good idea to try a direct connection during debugging because running a sniffer like Wireshark on that host would have shown that the HL2 was alive and seeing the discovery packets and sending replies.
So I will have to think about how much of this additional info needs to be added to the network troubleshooting page.
Also, please let me know of any other ways that the page can be improved.
Regards,
RDP