cannot configure etho

I have been trying to install a wireless lan under 8.04. Last week I changed the configuration, tried to save my changes, and my system hung. I had to reboot. That is not why I am writing.

When the machine came backup, I could not access any network. A ping to 127.0.0.1 said it could not find the network. After working thru many other questions on this site, I updated the /etc/network/interfaces and restarted networking. I had made progress, I tried just to go to the internet. The connection timed out. I rebooted and tried again. This time I could not find the server. I did an netstat and found another device associated with eth0. Where is that thing coming from?

I have another machine connected into the router. It's working fine.

At the bottom I am attaching the output of a netstat, the output of an ifconfig, and the contents of my /etc/network/interfaces. I really need help.

Thank

   ---------- output of netstat -r -----------------------
Kernel IP routing table
Destination Gateway Genmask Flags MSS Window irtt Iface
192.168.0.0 * 255.255.255.0 U 0 0 0 eth0
169.254.0.0 * 255.255.0.0 U 0 0 0 eth0
default 192.168.0.1 0.0.0.0 UG 0 0 0 eth0
   ----------output of ifconfig ------------------------
eth0 Link encap:Ethernet HWaddr 00:B0:D0:75:1C:CE
          inet addr:169.254.243.154 Bcast:169.254.255.255 Mask:255.255.0.0
          inet6 addr: fe80::2b0:d0ff:fe75:1cce/64 Scope:Link
          UP BROADCAST RUNNING MULTICAST MTU:1500 Metric:1
          RX packets:199 errors:0 dropped:0 overruns:0 frame:0
          TX packets:43 errors:0 dropped:0 overruns:0 carrier:0
          collisions:0 txqueuelen:1000
          RX bytes:69420 (67.7 KiB) TX bytes:4406 (4.3 KiB)
          Interrupt:11 Base address:0xc000

lo Link encap:Local Loopback
          inet addr:127.0.0.1 Mask:255.0.0.0
          inet6 addr: ::1/128 Scope:Host
          UP LOOPBACK RUNNING MTU:16436 Metric:1
          RX packets:88 errors:0 dropped:0 overruns:0 frame:0
          TX packets:88 errors:0 dropped:0 overruns:0 carrier:0
          collisions:0 txqueuelen:0
          RX bytes:6704 (6.5 KiB) TX bytes:6704 (6.5 KiB)

   ------------- contents of /etc/network/interfaces --------
auto lo
iface lo inet loopback
address 127.0.0.1
netmask 255.0.0.0

iface eth0 inet static
 address 192.168.0.112
 netmask 255.255.255.0
 network 192.168.0.0
 broadcast 192.168.0.255
 gateway 192.168.0.1

#auto eth2
#iface eth2 inet dhcp

#auto ath0
#iface ath0 inet dhcp

auto dsl-provider
iface dsl-provider inet ppp
provider dsl-provider

    pre-up /sbin/ifconfig eth0 up # line maintained by pppoeconf

auto wlan0
iface wlan0 inet dhcp

auto eth0