@http://www.gamesas.com/user/783896-phauxxee/
You could try this answer I found on the web: go to your steam program folder, right-click on steam.exe, go to properties, click on the compatibility tab, and the compatibility mode box should be turned on to Windows XP SP2). Turn it off, and steam should run.
And here is a link to Steam Support, you might be able to find the error your having.
https://support.steampowered.com/kb_cat.php?id=59
Hope it helps.
P.S I found another solution that might work, here is a steam user with a similar problem and he managed to fix it.
http://forums.steampowered.com/forums/showthread.php?t=1257146
Thanks for the offer to help, Fishysticks, but I really have tried all these and more and without any success, why I finally tried uninstalling and re-installing Steam in the hopes it would fix itself (which it didn't.) I have Win7 and there was no need to check off anything in the program's compatibility tab since nothing was checked.
All I need is for Steam to realize is that my internet is still online and working just fine without any changes or tampering on my part between the last time I played my game till the next morning 8 hours later.
This is what I get after Steam tries to update itself:
Steam Message # 1: Steam - Udate - 0% complete
Cannot contact Steam network, please try later.
Steam Message # 2: ERROR
Steam exe. (main exception): To run Steam you must connect to the Internet.