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So yeah, I installed Steam through the client and the first time I run it, it shows the "updating" window, and it gets to 99% then the box disappears and nothing else happens.

I'm running Debian 6.02 Squeeze
Kernel 2.6.39-2-amd64
GNOME 2.30.2

4GB RAM, i5-2540M

I have the wine config set up for Steam to run Windows 2008, if that helps. Thanks alot.

Be sure to use PoL 3.8.12 and the Steam PoL installer.

I'm using that version of POL and trying to run Steam through POL after installing it via the service..

Have you any error output ?
Launch PoL from a terminal to get some and post it here please

I ran steam and got this when it finished updating:

Running Steam
X Error of failed request: BadAlloc (insufficient resources for operation)
Major opcode of failed request: 154 (GLX)
Minor opcode of failed request: 3 (X_GLXCreateContext)
Serial number of failed request: 9123
Current serial number in output stream: 9124