This video shows how to fix this stubborn error, this is the easiest way to fix it. This happens because the server to send the data is down for some reason, and steam is not able to connect to it, and unfortunately it doesnt even try to look for other servers.
Infact ANY error related to old steam.exe file can be fixed with this, just make sure to run the newer file after deleting clientregistry.blob file.
Or if you want already updated steam without having to install such an old one, this trick can be used.
If you think this file is infected with trojan, you can goto http://www.virustotal.com/analisis/4c... to see for your convinience that this file is TRUSTED and SAFE. You can goto my blog post showing how to fix this error.