You need to have the usbnet hack installed and activated. To start usbnet automatically, it needs a file called "auto" in the usbnet folder on the usb drive, then you need to reboot to start usb networking. You should try that first, and worry about manually turning it on and off with the search bar commands later.
You must use a manually assigned IP address on your host PC for the kindle usbnet. The kindle is not running a DHCP server to give an address to the host.
If that is not the problem, then do you have another network interface using the IP subnet that the kindles want? If so, you need to either configure the kindle to use a different IP subnet, or change your other host computer interfact (ethernet, etc.) to use a different subnet.
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