TF2 freezing on loading screen

I've just bought TF2. when trying to play it, the game will load the valve and source screens but will stop at the loading screen with a few characters from TF2 and "loading..." in the bottom right corner. the mouse appears first as full hourglass, then after about 10 secs changes to both hourglass and pointer for 5 secs and then changes to the normal pointer. I have left it on that for 10 mins plus. I can move the mouse around but am unable to do anything else. I have to turn the computer off at the main button to be bale to do anything at all.

I have tried putting -autoconfig and -novid into the advanced options but neither of these worked. I have also also clicked the verify integrited of game cache... and defragment cache files. I have updated my graphics cards drivers and changed the ClientRegistry.blob file's name so that it will create a new one. as i am new to steam I am not sure how to uninstall/reinstall games on it, but don't think that would be the problem.

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System Information
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Time of this report: 11/2/2009, 00:34:19
       Machine name: ARCH
   Operating System: Windows XP Professional (5.1, Build 2600) Service Pack 3 (2600.xpsp_sp3_gdr.090804-1435)
           Language: English (Regional Setting: English)
System Manufacturer: System manufacturer
       System Model: System Product Name
               BIOS: BIOS Date: 09/04/08 17:20:51 Ver: 08.00.12
          Processor: Intel(R) Core(TM)2 Duo CPU     E8600  @ 3.33GHz (2 CPUs)
             Memory: 3072MB RAM
          Page File: 671MB used, 4285MB available
        Windows Dir: C:\WINDOWS
    DirectX Version: DirectX 9.0c (4.09.0000.0904)
DX Setup Parameters: Not found
     DxDiag Version: 5.03.2600.5512 32bit Unicode

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DxDiag Notes
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  DirectX Files Tab: No problems found.
      Display Tab 1: No problems found.
        Sound Tab 1: No problems found.
          Music Tab: No problems found.
          Input Tab: No problems found.
        Network Tab: No problems found.

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DirectX Debug Levels
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Direct3D:    0/4 (n/a)
DirectDraw:  0/4 (retail)
DirectInput: 0/5 (n/a)
DirectMusic: 0/5 (n/a)
DirectPlay:  0/9 (retail)
DirectSound: 0/5 (retail)
DirectShow:  0/6 (retail)

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Display Devices
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        Card name: NVIDIA GeForce 9500 GT
     Manufacturer: NVIDIA
        Chip type: GeForce 9500 GT
         DAC type: Integrated RAMDAC
       Device Key: Enum\PCI\VEN_10DE&DEV_0640&SUBSYS_13371462&REV_A1
   Display Memory: 512.0 MB
     Current Mode: 1440 x 900 (32 bit) (60Hz)
          Monitor: Plug and Play Monitor
  Monitor Max Res: 1600,1200
      Driver Name: nv4_disp.dll
   Driver Version: 6.14.0011.9107 (English)
      DDI Version: 9 (or higher)
Driver Attributes: Final Retail
 Driver Date/Size: 9/27/2009 16:12:22, 5900416 bytes
      WHQL Logo'd: Yes
  WHQL Date Stamp: n/a
              VDD: n/a
         Mini VDD: nv4_mini.sys
    Mini VDD Date: 9/27/2009 16:12:22, 7655872 bytes
Device Identifier: {D7B71E3E-4500-11CF-4154-3C3300C2CB35}
        Vendor ID: 0x10DE
        Device ID: 0x0640
        SubSys ID: 0x13371462
      Revision ID: 0x00A1
      Revision ID: 0x00A1

Try this.

Don't do that. I don't know what to do, but don't do that.

I fixed this very problem happening with TF2 that way a few months back..

Alright, try this before that, open cmd & type in "c:\Program Files\Steam\bin\SteamService.exe" /repair.

The cmd didn't work and deleteing the file (well changing it's name) just made Steam download an update, it made another SteamService.exe file and I had to log in properly instead of it doing it for me. But no, neither of these things fixed it. I also downloaded 2 game demos and they worked fine.