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How does the error-reporter running in the background relate to uploading your files?
(Does this have to do with the Steam Cloud? And did you do something out of the ordinary to make changes to that?)
And does this memory issue also happens when you are offline?
Have you tried re-installing Steam?
(If you re-install Steam, you have to make sure to save your “steamapps” folder somewhere else before uninstalling. Otherwise you have to re-install all your games as well.)