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You could have started by simply removing the steamui.dll file from the Steam directory (safer than outright deletion, with the same effect). With the file now "missing", it would have been redownloaded once you ran Steam.exe.
This is what fixed the issue for me.
On a side note, deleting Clientregistry.blob won't do anything, as this file only concerns your settings for your games. It was a way of solving some issues when converting to SteamPipe, or when your games have weird startup errors. It's not worth touching here.
As for deleting AppUpdateStats.blob, it's not a real solution either, as this has more to do with the connection of your client to the Steam network than with the initiation of the client proper in the here case (deleting it is used as a way to solve the "Steam needs to be online to Update" error).
This is an issue that's fixed in the latest steam client beta
Its also because for some god forsaken erasons you're still on XP or vista. Shame!
I SEE EVERYTHING!!!!
http://steamcommunity.com/groups/SteamClientBeta#announcements/detail/1695909891587769433
But seriously... you need to get off of XP or Vista...