Sorry guys! But it exists a way to fix it. Really!
1. Delete every dll files on cl_dlls and dlls folder of other_world_demo .
2. Copy the folders cl_dlls and dlls of valve to the other_world_demo .
3. Finish. You don't have to restart Steam.
Again, it's not designed for Steam. But please read readme.txt (again) :/
Your
- DennisG50 -