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Pff, your advice is what Steam told me to do when I sent them a ticket two days ago and it didn't work. But it's still worth a shot.
And amen, friend. This is starting to get ridiculous.
Originally I was able to get it running with steamtmp.exe but then I stupidly uninstalled it to try and fix it. This is why I do not like steam. When I buy a game I should be able to play it regardless of whether I have internet (offline mode only works sometimes) and regardless of whether the game service (steam) is working. I wish they would go back to physical disks with no retarded connect to the internet DRM.
If you continue to receive the error after following ALL of the instructions in that FAQ, please Contact Steam Support, making sure to provide an MSINFO32 report or Mac/Linux equivalent.
NOTE: We are investigating network issues with the new Steam client update in the Midwest US
Yes, I am in the midwest
I've done all of that, but still nothing. I have to believe that this is still a problem for more people than me...
went into Steam folder C:\Program Files (x86)\Steam
Then deleted all files with the extension xxx.OLD (did not delete original Steam files).
Went into C:\Program Files (x86)\Steam\steam\cached
Selected Everything Cntrl S and deleted everything inside (moved to recycle bin).
Exited Steam Folder/Exited C: Back to Desktop
Used web browser to login to my Steam account and downloaded the Steam Client from Install Steam Button at top of page.
Did properties on the new downloaded Steam Client -> Properties 1. Unblocked it 2. Security checked Run as Administrator.
Ran the Steam Client and installed over the existing Steam application.
Update window opens and appears to repeat initial problem (Wait for a few minutes) but actually updates and applies update correctly this time around.
Steam Client Launches correctly and asks for my login UID and PWD once entered Steam Client connects to Steam/Valve and works OK.
Hope this helps others out with similar problem.
The issue with this is only for the install \ update process it seems.
After the below fix is implemented you can then disable it once the update of the client has gone through and logging into steam.
How I fixed it:
Create a port forward rule in your router..
Port forwarding IP -> 23.62.97.232
I had to create 2 of them since it seems that steam is using download and upload in this update process (it's not just a download).
*This also depends on your router as well if you need both upload and download port forwarding to that IP. Some routers may work with just one but mine did not.
Hope this helped since I went through everything I could google and nothing worked for me.
-Mullet