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"PopCap has not recently updated Peggle or Peggle Nights through Steam, and we apologize that you've experienced this issue. This is an issue that has occasionally been reported during Steam outages and maintenance. Most players who have experienced this issue have been able to resolve it by completely exiting the Steam client, then reopening it and logging back in. After you've logged back into Steam, try uninstalling and reinstalling the game.
If you are still unable to access the game we can only recommend that you contact Steam for support. PopCap does not have access to Steam's systems, and we are unable to provide further troubleshooting advice for download and installation issues through their service. Steam Support can be contacted about this issue through the following link: https://support.steampowered.com/"
I tried all that and still get the error. I don't know. Gota try and contact Steam support I guess.
- type "regedit" into the Windows run bar or the search bar that appears when you click on Start in Windows
- go to
HKEY_CURRENT_USER\Software\Steam\Peggle (may be slightly different depending on the game)
- double click to open the ScreenMode file and change ScreenMode to 0
apparently there is a problem with the game starting in fullscreen mode.. the game will be in a smaller windowed mode, but will run.. hopefully they fix it soon.. I would imagine this applies to all the popcap games not working, but I only have peggle.. hope it helped.
A Valve employee posted on Reddit yesterday (finally) that they were able to duplicate the issue and were looking into a fix. You can make your own Valve time joke regarding when that fix will come.
https://pcgamingwiki.com/wiki/Peggle which worked for me.
This link doesn't mention the FATAL ERROR issue.