I sent the logfiles to Dan via another thread on the Steam forums regarding the same issue with .net.
Turns out my .net, even though working correct, installed correct and verified to version 4.xxxx.
Here is the text of what the reply to me was on that forum. The question to report to him what version of the .dll file I had was correct, my version for some reason is still 2.0.50727.4927. This is suggested as the source of the issue.
If I can figure out how to update that file or fix my windows to fix that file I will update.
Reply text below;
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Which means that even though .NET 4 installed without reporting any errors, there's something wrong with your system configuration.
It looks like this might be because:
"The file %windir%\system32\mscoree.dll and/or %windir%\syswow64\mscoree.dll has a file version of 2.0.* instead of 4.0.* (and you have rebooted your computer after installing the .NET Framework 4 to make sure that any files that were in use during installation have had a chance to be updated)."
Can you find the mscoree.dll file here: %windir%\system32\
... and report back with what version it is?
This page gives the most detailed info about this problem:
http://blogs.msdn.com/b/astebner/arc.../10110053.aspx... unfortunately there's no easy solution.
They suggest a windows repair or using the System Update readiness tool:
http://support.microsoft.com/kb/947821---
Fixed URL [Dan]