Fallout 3: GOTYE (Steam) - Hangs when starting

I got Fallout 3: GOTYE with the QuakeCon pack and when I installed it and ran it for the first time it had 4 instillation steps to preform. There was an error on the forth one. I think it had to do with .net but I'm not sure. Now when I have it start a game it starts to load it but before the screen does anything it just hangs and stays black. I also tried deleting local content and reinstalling but it did not work.
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More about fallout gotye steam hangs starting
  1. Try updating .net?
  2. I ran Windows Update (Win7 Pro, 64-bit) and there was one .net update. Tried the game again and still nothing. Is there a .net update I need to find and download manually?
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