I had the same problem while updating hlds dedicated server after last update.
The update procedure always gave me this message after

.\engine_amd.so
Compression failure

I've removed my InstallRecord.blob but had no luck

What solved, in my case, whas to remove the account data from the steam command 
line

-username and -password where removed from command line

and it worked

Don't know if this will be helpfull

Luca

On Sun, 29 Oct 2006 14:15:47 -0800, "Alfred Reynolds" <[EMAIL PROTECTED]> wrote:
> If you see this then please send me (and not the list) the output of
> running "./steam -command ticketexplorer".
>
> Thanks,
> Alfred
>
> Franck Turmel-Josek wrote:
>> Hi,
>>
>> We have the same problem with CS 1.6 and CS:CZ.
>> On FedoraCore 3 based servers.
>>
>> I have backup if you want.
>> And don't run your game server with -autoupdate !
>>
>> Bests regards.
>>
>> Franck
>>
>>
>> Hans Vos wrote:
>>> Hi,
>>>
>>> I'm trying to update some of our Counter-Strike 1.6 game servers. We
>>> are experiencing the following problems. If test this on a Gentoo
>>> based server and Ubutu based server. Both are dual AMD Opteron
>>> servers (a single core 244 model and dual core 275 model).
>>>
>>> 1. Compression failure?
>>>
>>> [EMAIL PROTECTED] hlds $ ./steam -command update -game cstrike -dir .
>>> Checking bootstrapper version ...
>>> Updating Installation
>>> Checking/Installing 'Counter-Strike Base Content' version 17
>>>
>>> Updating 'Linux Server Engine' from version 35 to version 36
>>> Downloading: .\core_i386.so Downloading: .\engine_amd.so
>>> Compression Failure
>>>
>>> 2. ./hlds_run vanishes
>>>
>>> Immediately after the message above, I tried starting the game server
>>> again. Please note, this server was operating normally before trying
>>> to update it.
>>>
>>> [EMAIL PROTECTED] hlds $ ./hlds_run -binary ./hlds_amd -game cstrike
>>> -pingboost 2 -secure -port 27015 +ip 1.2.3.4 +servercfgfile
>>> "server.cfg" +mapchangecfgfile "server.cfg" +maxplayers 14 +map
>>> de_dust2 -bash: ./hlds_run: No such file or directory
>>>
>>> Is there a solutions for these problems?
>>>
>>> --
>>> Kind regards,
>>>
>>> Hans Vos
>>>
>>>
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>>>
>>
>>
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>
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