This is a problem that occurs sometimes with Macs. When connecting to a network that uses DHCP they want to use the same IP Address they used the last time they connected. However, after a router reboot the router will assign IP addresses on a first come first serve basis.
For some blasted reason a Mac connecting to the network will continue to want to use the same IP Address it used before. Rather than just taking a new one and keep throwing up this error.
The methods I have found to prevent this are to delete the network from the Keychain then reconnect, create a new network location in the Network pane and delete the old one, or assign static IP Addresses.
This has been a long standing problem in OS X. Though I have yet to encounter it with Lion. I don't know why Apple has had so much trouble with automatic DHCP, Windows just moves on to the next address.