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When I run Steam in regular mode, following happens:
Creating new Steam library folder
C:\Program Files (x86)\
New Folder... (I call Steam)
Then it says "Failed to create a folder, this drive is read-only"
I also tried:
Create a Steam folder manually in C:\Program Files (x86)\
Then it says "New Steam library folder must be writeable"
By some reason, one of these two messages also some times appears, when I run in Administrator mode.
It seems, that Steam don't like if one install games on two different drives at the same time (after I reinstalled Steam, I only install games at one drive at the time, which I don't think about before the reinstallation).
I just waited for it to finish that process and then it was able to create the new library and start downloading/installing the new game.
It was because a game was updating
Updates in steam are rather obtrusive, freezing up at times, giving weird errors and seemingly simple things like adding a library folder fail.
Edit: I found out that I couldn't play my other games on my D drive after reinstalling steam on my C Drive but all I needed to do was follow Ethan J's post everything fell into place after creating a new folder from C to D. (since the games were already installed on D).
Hello Bonehead from one year ago, this was helpful and saved me a lot of time. Thanks!
//A grateful soul from the future!