BlindSightIf anyone is having any issues, here is what I suggest and here is what worked for me:
If you get an error message like this:
http://nsrt.me/bin/1390526103.png
1) Validate your TF2 cache ( Steam -> TF2 -> Properties -> Local Files -> Verify Integrity of Game Cache (there will probably be a lot of errors)
2) Move your download and cfg folders to your desktop (you will most likely loose either in the update, I did it as a precaution)
3) Exit and relaunch steam
4) Update TF2 (it should work now)
5) Move your folders back, but keep a copy on your desktop or back up location of choice just in case
6) Start the game, it should work.
Let me know if this helps anyone!
All I did was restart steam and it worked. Try that first to save yourselves time.