Check for software updates by going to itunes.com and download the latest version of iTunes and installing it.
It makes a big difference in the drivers it install for your iPad and when syncing other apple devices such as iPhone and iPods.
This fix also can be applied to other apple produce such as the iPhone(s) and iPod touch(s) too.
Ok, now on to the fix.
Here how to fix your Wi-Fi connection issue:
Unplug the power to your Wi-Fi Router by unplugging it from the power or turning it off.
Go to Setting > General > Reset > Reset Network Setting > Reset
After the white Apple Logo goes away
Hold down the top right Sleep/Wake button and the Home button “button on the bottom of iPad with square in it” until the apple logo comes on again.
Plug in the power to Wi-Fi router
Connect to Wi-Fi
Check the IP address by clicking on the blue circle with arrow pointing to right IP address should be a different address than 169.xxx.xxx.xxx
Still getting 169.xxx.xxx.xxx then try the following steps:
Take to a Starbucks or somewhere that has free Wi-Fi and see if it will connect with a different IP addresses.
If able to connect with different IP address then possible issue with Wi-Fi router.
Otherwise follow the following steps:
Sync iPad with the computer you setup with iTunes
Click on name of iPad under Devices
Click on file then transfer purchases
Click on restore on Summary page
If asked to backup setting for iPad click on Do Not Backup Setting
After iPad has be restore and setup as New Device
Try connecting to the Wi-Fi router again
If IP address is not 169.xxx.xxx.xxx iPad then it not an issues with Wi-Fi router.
Otherwise it needs to be replaced or test with a different Wi-Fi router.