That last update Alfred just mentioned seems to fixed my issues on CentOS 5.x

Thanks!

On Thu, 2012/07/12 05:53 PM, Alfred Reynolds <alf...@valvesoftware.com> 
wrote:
> Linux has had a small update to add a couple support files, if you had 
> troubles running the previous update on Linux run the update tool again.
> 
> -----Original Message-----
> From: hlds_linux-boun...@list.valvesoftware.com 
> [mailto:hlds_linux-boun...@list.valvesoftware.com] On Behalf Of Alfred 
> Reynolds
> Sent: Thursday, July 12, 2012 5:04 PM
> To: Half-Life dedicated Linux server mailing list 
> (hlds_linux@list.valvesoftware.com); h...@list.valvesoftware.com; 
> hlds_annou...@list.valvesoftware.com
> Subject: [hlds_linux] Half-Life 1 dedicated server update released
> 
> We have released an update to Half-Life 1 dedicated servers. This update is 
> moving the heartbeating protocol for servers to go over a more reliable 
> channel and also contains some code fixes in the steam support portion of the 
> server. After this update the "setmaster" command will return "none", this is 
> by design, your server will still be reported.
> 
> We expect to disable the old reporting method in the next week or so, so 
> please apply this update at your earlier convenience. 
> 
> - Alfred
> 
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-------------------------------------
Subject: After 2012-07-12 HLDS Update for GoldSrc = SteamAPI_Init() failed
From: Weasel <wea...@weaselslair.com>
Date: Thu, 2012/07/12 05:43 PM
To: hlds_linux@list.valvesoftware.com

Yeah, after the update ... basically the same error the Collin reported.
I am also running CentOS 5.x ...

[S_API FAIL] SteamAPI_Init() failed; unable to locate a running instance of 
Steam, or a local steamclient.dll.
L 07/12/2012 - 17:37:45: FATAL ERROR (shutting down): Unable to initialize 
Steam.
FATAL ERROR (shutting down): Unable to initialize Steam.

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