After some technical handling, my computer is up and running again. It turns out the problem was with a few bad sectors on my windows drive. Fortunately I had two OSes, so I was able to run scandisk to solve the problem.
I'm running counterstrike:source as I'm typing this. It's great that the developers had a 'run in window' option. Initially the game gave me some problems with lag due to my wireless network. Turning off "wireless zero config" under windows services solved the problem. Multiplayer is a smooth buttery pleasure now.