As I suspected, Valve must be locking out accounts on the steam network. After creating a new account (with a spare e-mail address) everything is now hunky dory....
How you're supposed to switch between e-mail addresses without locking out your half-life key is beyoind me though.
Since my original steam based nightmares its settled out now and appears now to be working as advertised (the buddie list finally got sorted y'day by the looks).
Chetan tells me that Telewest have started up a steam content server meaning that we have leechability on this side of the pond now, we'll see what happens with the next major content update I guess.
I installed steam today and have the same problem. It seems to be down as one of many bugs to be fixed later today according to the Steam news (would post the URL but apparently I'm not allowed as I'm new!)
I'm now onto my second bout of Hard Disk mayhem with Steam. For whatever reason, steam just sends my hard disk into 'dance the head all over the disk indefinately' mode. The only way to solve this is to reinstall.
I believe a few others are experiencing this problem too :/
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