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I almost put a hole in the wall after the 15th install attempt. Then I read a thread deep in these forums, followed the advice and my install was successfull.
Thank you, I forget the poster, but copied his words of wisdom to notepad and here they are:
ok first off go to control panal add and remove programs, then at bottom uninstall windows xp service pack. 2
then reboot system.
open start in the run type regedit look for local_hlkey steam path delet it.
then click on your start again click on search find files & folders make sure c:/ drive is the search drive then type HL2 every folder that pops up delet it all then restart windows.
Now you can try to reinstall the game.