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Then double click steam.exe, steam will redownload everything and should repair itself, will take a bit.
Right click on Steam.exe
Click Properties
go to the compatibility tab
Check the box for running in compatibility mode, then select your OS (If on Windows 8 like me, use Windows Xp service pack 3.
hit apply and ok
Launch Steam
Allow UAC prompt
It will then say it is not recommended to run Steam in Compatibility mode. hit cancel.
Login in to your account
I had to agree again to the terms and conditions.
After that, Steam seems to be running just fine. i would recommend trying this to anyone having trouble, I was blocked by this error for 4 days.