From what I've read Valve is for shit when it comes to tech support issues concerning Steam. Their official stance is that it is perfect and infallible, so you the customer must be at fault. I've read of others having the same issue, but stopping and restarting the installation gives them the re-install option that installs from CD. I have not found a way to get that option to appear.

I just bought the Orange Box, so the files present should at least facilitate the install, with patching done via Steam afterwards.

I've read about the illegal fixes, but they mess with Steam, possibly causing suspension of your Steam account and setting off VAC to get you banned from online play. I'm not ready to go that route yet.

Thanks for the suggestions.