Originally Posted by ajstorey915
##### Sys_Error: Host_Error: IDLLFunctions::DLLInit returned false
I've not been able to reproduce this on 10.7 (or even 10.6).
However, I did start getting a crash that I don't think is related. I've updated the packages linked in the first post with a fix for that. It might be worth giving that a try.
If that still doesn't work, make sure you've got a recent copy of the engine binaries extracted (the bin directory). Depending on which Steam option you're using (A or B) either make sure the CS:S client has been run recently or extract a fresh set of files from the "multiplayer ob mac binaries" GCF file.