We have an ERP 6.0 system with SAP Kernel 700_REL. We upgraded the SAP kernel to 720_REL. Ater the successful Kernel upgrade
to 720_REL, we started receiveing error "partner 169.254.1.250: sapdp01 not reached" when logging into SAP.
Issue is a known issue and is resolved by SAP note 1365796 - Local hostname resolution fails in Windows Failover Cluster.
As specified in this note, this issue only occurs on Windows Server 2008 and Windows 2008R2. It is fixed in Windows Server 2012.