Re: OK WTF!
Damn, that's a pretty weird problem - either something is wrong with the retail version that I don't know about, something is wrong with the Steam that ships with the retail version (I assume that Steam was also on the DVD with the game?), or my final option...
In your paths, I see "program files" is "progrmafiles" - is the error showing the path as it's spelled on your machine? Just a stab in the dark...
I'm afraid I've never installed Steam from a product CD - HL2 and Sin:E were both purchased online and downloaded. I'm seriously wondering if there are problems with Steam packaged with Sin:E.
I guess after all this, you could be unlucky and have a faulty DVD - still, I think you'd see errors or problems during install, if that were the case.
Oh one last thing - edit your first post, change the title to "Problem launching Steam" or similar, then post again asking badman to move your thread to the tech support forum. Support will not be scanning threads called "OK WTF", unless they're very bored [img]/forums/images/graemlins/smile.gif[/img]
Hope you get it sorted!