*** FIX ***
For those of you that are getting this error... Easiest way to do this:
MAKE SURE THAT YOU KNOW YOUR STEAM PASSWORD BEFORE PROCEEDING, BECAUSE YOU WILL HAVE TO RELOG INTO YOUR STEAM ACCOUNT
1.) Close whatever steam games you are running, and then close steam.
2.) Double Click - My Computer
3.) Then Program Files > Steam folder
4.) Delete your ClientRegistry.blob
Re-Launch Steam, then let it autoupdate (It's recreating the file) then you should be fine.
Hope that helps anyone that has had issues with this problem. It is a re-occuring problem (should happen on average once every 2-3 months after each fix, and took me a while (the first time it happened to me) to find a fix for it.