Wine 1.7.8 is not fixing this bug for me.  I have frequent
authentication failure hangs.  When I first install steam I can get in
but can not download any games or verify the game cache.

After I log out of steam,  logging in again causes steam to fail during
authentication.

Interestingly I get the same error prior to the 1.7.8 fix,
[1215/013422:ERROR:resource_bundle.cc(417)] Failed to load C:\Program Files 
(x86)\Steam\bin\chrome.pak
Some features may not be available.
fixme:iphlpapi:NotifyAddrChange (Handle 0x5e7d4d8, overlapped 0x5c974b0): stub
fixme:winsock:WSALookupServiceBeginW (0x5e7d5d8 0x00000ff0 0x5e7d620) Stub!
[1215/013422:ERROR:network_change_notifier_win.cc(126)] WSALookupServiceBegin 
failed with: 8


Just as a sanity check
wine --version
wine-1.7.8

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https://bugs.launchpad.net/bugs/1257734

Title:
  Latest Steam update breaks wine

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