HL 2 Not working on Steam? BSOD!!!!

[Code_Blue]

Hey there. This is my first time running steam on my computer and I found this offer online from ATI which it will give you Half Life 2 death match and Half Life 2 Lost Coast for free if you own an ATI graphics card. So i took the offer since I heard that Half life was good. After it was done downloading and installing, I clicked on launch to play the game it it took me to Steam's disk defragmeter to make my games run better and smoother. And once it was done, the game boot SCREEN popped up showing 2-3 people with guns. Then all of a sudden I get a BLUE SCREEN OF DEATH!!!! Oh My god! The blue screen of death (BSOD) told me it was doing a memory dump. And it gave me the following errors.

Stop: 0x00000116 (0x86EF0008, 0x8C4163EE, 0x00000000, 0x00000002)
--------------------------------------------------------------------
ATIkmdag.sys- Address 8C4163EE base at 8C406000, Datestamp 493450BA

Eversince I saw ATIkmdag.sys, I figured that this problem was based on ATI. So it must of been my graphics card. So i went to ATI website and downloaded the newest updates for December 2008 restarted and tried again. and STILL! can't get it to work! please help me! Also it talked about caching and shadowing, for the caching I am using Windows Ready Boost. Maybe that could be a problem?

COMPUTER SPECS:
AMD Sempron Processor 2800+ 1.60GHz
2 Gigabytes of RAM (1 Month's old) (used to have 512 megs of ram)
Windows Vista Ultimate Service Pack 1, 32-Bit

System
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Manufacturer MICRO-STAR INTERNATIONAL CO., LTD
Model MS-7142
Total amount of system memory 2.00 GB RAM
System type 32-bit operating system
Number of processor cores 1
64-bit capable Yes

Storage
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Total size of hard disk(s) 540 GB
Disk partition (C 15 GB Free (50 GB Total)
Disk partition (D 9 GB Free (25 GB Total) <--- THIS IS WHERE STEAM AND THE GAME IS INSTALLED

Media drive (E CD/DVD
Disk partition (I 386 GB Free (466 GB Total)

Graphics
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ATI Radeon X1650, 512 Megabyte Graphics Card (Updated driver)
Display adapter type Radeon X1650 Series
Total available graphics memory 895 MB
Dedicated graphics memory 512 MB
Dedicated system memory 0 MB
Shared system memory 383 MB
Display adapter driver version 8.561.0.0
Primary monitor resolution 1024x768
DirectX version DirectX 9.0 or better

 

[Code_Blue]

Help! Please

PLEASE GUYS!!!! I really need your help! Please answer!:bounce::sniper::O

 

[Escaep]

PLEASE GUYS!!!! I really need your help! Please answer!:bounce::sniper::O

Have you tried a reinstall?

 

[Code_Blue]

Have you tried a reinstall?

Yes I have. I said that in my first post. Is there anyone that can PLEASE help me fix this?

 

[Code_Blue]

ok I do not understand why, the CREATORS of Half-Life or at least a guru can not help me out. I am a supporter and have bought games from you people. I do not understand why there is no possible way for you to help me out when I clearly posted (which I believe) everything you need to know how to help me. If you can't help me, then I am sorry. I do not take your service seriously and professional. Please help me out because I love this game. I will post anything else you need.

 

[kineaesth]

Right. This is a Half Life 2 fan community - we're not Valve, or Steam, we're not official at all. Everyone here is just a fan of the games. There are a few people here who may be able to help you out, though.