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They finally contacted me yesterday with this:

Hello,

A staff member has replied to your question:

Hello Edan, Thank you for contacting Steam Support. The problem is sometimes caused by Steam's permissions in the registry. Please try the following: Exit Steam. Go to the "Start" or Windows Button menu, select "Run", type "regedit" and click "OK". Navigate to the following registry key: HKEY_CURRENT_USER\SOFTWARE\VALVE Right click the Valve folder and select "Permissions" Select the group or user name you are currently logged in to, and ensure that the "Full control" and "Read" options are checked in the box below. Then, highlight "Admin" and "System" and ensure that they too have the "Full control" and "Read" options checked. Restart Steam. If the issue continues please submit an MSINFO32 report: Title: MSINFO32 Reports Link: http://support.steampowered.com/kb_article.php?ref=1376-WTZN-9132

I did that, didn't work. Sent the MSINFO32 report. They replied with this:

Hello,

A staff member has replied to your question:

Hello Edan, NOTE: If you are running in Windows Vista or Windows 7, please completely exit Steam, and right-click on the shortcut which you use to launch Steam and select "Run as Administrator" as outlined here: Title: Windows 7 and Vista Troubleshooting Link: http://support.steampowered.com/kb_article.php?ref=5688-IFHZ-2170 If the issue persists or you are on Windows XP, please exit Steam entirely. Download and install the latest DirectX update, available here: http://www.microsoft.com/downloads/details.aspx?FamilyID=2DA43D38-DB71-4C1B-BC6A-9B6652CD92A3&displaylang=en Install the latest PhysX update as well, which can be found here: http://www.nvidia.com/object/physx_system_software.html Now, browse to your Borderlands install folder, which by default can be found here: C:\Program Files\Steam\steamapps\common\borderlands\ Open the "Prerequisites" subfolder and run the appropriate "vcredist" installer for your system. vcredist_x86.exe (For 32-Bit versions of Windows) vcredist_x64.exe (For 64-Bit versions of Windows) Then, re-start your computer and re-test the issue. If the problem remains, and you are running an ATI video card, please try disabling the Catalyst AI feature, and testing the issue once more. Should the issue continue, please delete the "Prerequisites" folder, then verify your GCF: Title: Verifying Game Cache Files (GCF) Link: http://support.steampowered.com/kb_article.php?ref=2037-QEUH-3335 Once that process is complete, repeat the above steps. If the issue still is not resolved, please contact the support team for this title to further troubleshoot the issue: Title: Borderlands Link: http://support.steampowered.com/kb_article.php?ref=9639-VOMT-3943

I did everything. Still nothing.

Now I'm waiting for their next brilliant idea.

To turn off Catalyst AI I had to go through a bit of a marathon google journey, apparently the new CCC has changed everything so if you go to game options and turn off "Enable Surface Format Optimization" and turn the slider down to "Performance" that turns it off. Didn't work, so I downloaded RadeonPro and couldn't find the "turn off AI" option in there....

*shrugs*