Steam says the servers are too busy
WAIT FOR IT, I'm not done telling you my problem.

Steam lied, all other games/downloads work fine. Changed server location and tried reinstalling steam, this problem only occurs with Skyrim. (Installing from disc or downloading the files)

Okay, now you can deliver you obvious magical fix that I've somehow missed.

I'll try at least.

First thing to try is deleting or renaming ClientRegistry.blob after you have shut Steam down and then restart Steam after dealing with that file. Steam will then regenerate it. Sometimes issues like this can happen if that file gets corrupted or something and regenerating it can help.

Thank you, I'll go ahead and try that right now.
Be wary of my wrath if your magical fix bears no fix.

Edit: BLAST Steam is still lying to me.

Okay, to clarify: this only happens with Skyrim, and it happens consistently when trying to download/install it from Steam's content servers? Yet you can download/install any other game in your Steam library without an issue? Do you have a firewall/anti-virus, and have you verified that neither of those are interfering with Steam? (I can't imagine why they'd object to installing one game over another, but...who knows.) You might also want to try https://support.steampowered.com/kb_article.php?ref=1456-EUDN-2493, although again, it seems odd that your network settings would give Steam a hissy with only one game and not another.

Nuking ClientRegistry.blob usually fixes this sort of issue right off, though. Hm. You can also try deleting the AppUpdateStats.blob and see if that does it.

If you've eliminated the firewall/AV/network as possibilities and deleting AppUpdateStats.blob doesn't do it either, it sounds like it's time to send an inquiry to Steam Support. https://support.steampowered.com/newticket.php. Since support accounts are separate from Steam accounts, you'll need to create unique account details (IE: don't use the same username/password as your Steam account!).

Make sure you explain in your initial ticket that you've tried changing download regions, deleting ClientRegistry.blob, and so on. That will save you and them both some time.

Just deleted both of those and completely disabled my AV and Firewall, but I agree that wouldn't stop one game from being downloaded.
To check again I downloaded Microsoft Flight (free game) and that's going fine, the only problem is with skyrim and it happen when I try to install from disc or download the files.
Steam is so cruel to me.
Thanks for that link, I'll go do that.
I'm gutted, coming here usually solves all my problems