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If you are having the bug where the game is loading between a chapter and it starts to repeat the sound over and over until it crashes, start the game, go into video options and change rendering device from OpenGl to D3D, at this point for me, it loaded the level properly. Assuming it does load make sure to go back to OpenGl because the game needs it for several effects.
In the mod there should be a folder named bin with two dll files, I cant remember the names. Try copying the files from another working orangebox mod to that and try again.
The problem is that the sdk didnt copy some dlls to the mod. Heres a fix, go into the mods root folder and find the bin folder. If it isnt there, make one. Then copy the client.dll and server.dll files from hl2 or a working mod and put them in the non working mods bin folder. Hope it works for you.