I keep getting the same issue on my virtual machine (windows 7 32 bit).
When I install the base css setti install, I can launch css, however obviously it is out of date so I can't connect to any servers. I run the latest patch (v8) and then when I try to launch css, I get an hl2.exe has crashed message. The fault module is steamclient.dll
If I replace steamclient.dll or delete it, css will launch but you get the "you must install steam beta" message when trying to connect to a server. How do I fix this?? I've installed the release as administrator. Thanks