WPA2-AUTO DHCP Problem with Windows 8

I recently faced a WLAN problem using Windows 8 devices. The WLAN was configured to use WPA with a pre-shared key. The network was working fine with Windows 7 devices. However, devices running Windows 8 only had limited connection with a auto configured IP address 169.254.0.0/16 and did not use the DHCP configured IP range. The problem was solved by changing WPA2-AUTO to WPA2.