There are many people having issues with Source based games right now. For the most part it's only happening to people running XP pre-SP2. Updates or a new PC/OS should fix the problem. Valve dropped support for SP1 a year ago and at the time they said that they were giving people a year to upgrade their systems. A year has passed now and people seem to have forgotten.
If you don't fall into this category then I don't know what to tell you. Everything is working fine on my Windows 7 and my XP SP3 PCs.
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This, or try verifying their cache files. Another thing you can try in go to your steam directory and find a file called clientregistry.blob (I think thats how it spelt) delete the file, so steam will be forced to update, which could remove any problems.
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Since the Steam Client update in the beginning of Summer Sale (or before it begins, don't remember) Counter Strike Source stopped working, it freezes in the main menu background (without the menu, just the background). Then I tried TF2 and L4D2, both didn't work, TF2 at least loaded the menu, but froze when i clicked to find servers.
I contacted Steam Support last Friday, but they seen too busy to answer me...
I created this thread to see if anyone else is having the same problem.
Here's a screenshot of how the problem looks like in CSS.
And if there is any grammar nazi out there, sorry for any mistake. (Greetings from Brazil)
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