Fix:
1. Uninstall Avast, awful anti-virus.
2. Install Microsoft Security Essentials - great anti virus, doesn't give as much protection as others when it comes to idiots using PC's, but so long as you don't go on obvious malware sites, you'll never get any attack or virus on your machine.
3. ???
4. Profit.
Seriously, I really think that a full anti-virus program is just a way of shouting out 'I HAVE WEIRD SEXUAL FETISHES, I NEED PROTECTION FROM NASTY SITES PLZ'.
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Or just don't use anti-virus software. I haven't for 2 years and I'm still running fine on the same OS install.
Just had the same problem when I booted up this morning, very strange!
I always add the steam folder to the excluded list. Should make games load quicker
Why do I have a popup telling me to Install Steam Service
And why does it seem to have frozen. My crystal ball is foreseeing a removal of Avast very soon...
Or just don't use anti-virus software. I haven't for 2 years and I'm still running fine on the same OS install.
That'll be because the service executable was deleted by Avast (or rather put in to it's virus vault).
EDIT - I just downloaded the installer from Valve's website having the same thing and repaired the installation that way and everything seems to be ok now.