I have this issue even with Steam Guard disabled.

Furthermore it seems that despite having read/write access it fails to make
the /Steam folder and the files that go in it.

[----] !!! Fatal Error: Steam failed to load: *SteamStartEngine(0xffe69af0)
failed with error 1: Unable to write to the current Steam application
folder.
Please move Steam to a folder where you have write privileges.

Then I ran the old hldsupdatetool from the very same folder with the same
permission set and it created the /Steam folder just fine.

I'm thinking perhaps the Appinfo update error is related to it's inability
to create/access files in certain cases?

On Mon, May 14, 2012 at 5:18 PM, Taylor Sherman
<TaylorS at valvesoftware.com>wrote:

>  Had you already tried using set_steamguard_code to set your Steam Guard
> email code?****
>
> ** **
>
> *From:* csgo_servers-bounces at list.valvesoftware.com [mailto:
> csgo_servers-bounces at list.valvesoftware.com] *On Behalf Of *Nicholas
> Hastings
> *Sent:* Saturday, May 12, 2012 4:52 PM
>
> *To:* csgo_servers at list.valvesoftware.com
> *Subject:* Re: [Csgo_servers] Centos 5.8 - ERROR! Failed to request
> AppInfo update, not online or not logged in to Steam -> after successfully
> logging in****
>
>  ** **
>
> For what it's worth, I was on Windows.
>
> I think someone else mentioned something about Steam Guard causing the
> tool to lose connection, which made me try without. I don't remember if it
> was someone from Valve or not with the huge mass of emails that have come
> across this list over the past day.
>
> On 5/12/2012 7:49 PM, Ultrix Prime wrote: ****
>
> You?re the man ? that was it ? so steam guard rather hates this tool, on
> Centos 5.8 final anyway.****
>
>  ****
>
> Thank you much!****
>
>  ****
>
> Ultrix****
>
>  ****
>
> *From:* Nicholas Hastings <psychonic at alliedmods.net> ****
>
> *Sent:* Saturday, May 12, 2012 5:38 PM****
>
> *To:* csgo_servers at list.valvesoftware.com ****
>
> *Subject:* Re: [Csgo_servers] Centos 5.8 - ERROR! Failed to request
> AppInfo update, not online or not logged in to Steam -> after successfully
> logging in****
>
>  ****
>
> I had the same issue and had to disable Steam Guard temporarily to get
> around it. (that exact error, and after setting the steam guard key and
> getting logged in properly).
>
> On 5/12/2012 7:33 PM, Ultrix Prime wrote: ****
>
> I?ve yet to have it work. What?s more, telling it to log in a second time
> then hangs. Alternatively, logging in from my PC causes the steam tool to
> fail to log in and then logging out locally and in yet again:****
>
>  ****
>
> Steam> app_update 740 validate****
>
> ERROR! Failed to request AppInfo update,not online or not logged in to
> Steam.****
>
>  ****
>
> message.****
>
>  ****
>
> Anyone have an idea on this other than ?it works for me??****
>
>  ****
>
> This may be a Centos 5.8 final specific issue :/****
>
>  ****
>
> Ultrix****
>
>
>
>
> ****
>
> _______________________________________________****
>
> Csgo_servers mailing list****
>
> Csgo_servers at list.valvesoftware.com****
>
> https://list.valvesoftware.com/cgi-bin/mailman/listinfo/csgo_servers****
>
> ** **
>  ------------------------------
>
> _______________________________________________
> Csgo_servers mailing list
> Csgo_servers at list.valvesoftware.com
> https://list.valvesoftware.com/cgi-bin/mailman/listinfo/csgo_servers****
>
>
>
>
> ****
>
> _______________________________________________****
>
> Csgo_servers mailing list****
>
> Csgo_servers at list.valvesoftware.com****
>
> https://list.valvesoftware.com/cgi-bin/mailman/listinfo/csgo_servers****
>
> ** **
>
> _______________________________________________
> Csgo_servers mailing list
> Csgo_servers at list.valvesoftware.com
> https://list.valvesoftware.com/cgi-bin/mailman/listinfo/csgo_servers
>
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