While RARP was perfect in providing IP to a machine asking for it with a MAC, It was desirable to know other internet information like Subnetmask, DNS, Gateway address ) but RARP was not designed for this.
A new Protocol called BOOTP( Boostrap protocol) was designed to provide this information, which enables static configuration.
Unless a network is intentionally configured using Auto IP addresses, a device with an Auto IP address is a sign that there is a problem with the network.
Most networks using automatic IP address configuration for new devices use DHCP, not Auto IP.
Let me show you how to configure IP address and other network information in Windows 7 here.
As you know IP address must be configured on computer in order to communicate with other computers, because this IP address is the standard address understood by computers and other networking devices in networking world.
Automatic Private IP Addressing, also known as APIPA or Auto IP, is a method of automatically assigning IP addresses to networked computers and printers.
A networked device configured to use Auto IP first makes a request to a DHCP server for an address.
In man network now a days DHCP is used for address assignment.
IP addresses can be assigned automatically or statically.