I had a similar problem with steam. I don't remember what it said the issue was, but when it would try to fix the problem it always said it couldn't find the server. The issue started happening with other steam games too. I ended out deleting steam, and had to reinstall everything, but it works again.
More info: using Vista Home Premium, 64 bit. Issue started when I had it check files in the game for errors; I think the game was Half-life II.
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I have Attention Surplus Disorder.