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Thanks for the reply. The ping goes through, but the response time is pretty high. I don't know what's causing this.
Ok, so your DNS client is working but either your DNS servers or your Internet connection is slow. Try changing your DNS servers to either Google or Norton and running the same test. That should rule out DNS servers.
EDIT: added "client"
In the end I took a different approach. I throttled my Steam download speed to 2MB/s- a setting found in Settings -> Downloads (using my original DNS entries) and everything appears to work dandy.
IMHO, the Steam client is terrible neighbor to other programs that need the Internet on your computer.