I just booted it up and played an entire game. Nobody else seemed to have any problems and my only connection issues were at my end, not Steam's. What error are you getting? If it keeps trying to connect to IWNet but never establishes an operating connection then you've probably been banned for some offence either caught by VAC or the community reporting you. If it's taking a while to find games or keeps having troubles connecting to hosts then it's probably an issue where you are—check the status of your NAT, if it isn't Open the duration it takes to find a game will be greatly increased.
i probably should say this that i just reinstalled windows and i was too lazy to download the files so i just moved the cod folder to the current steamapps folder... I have done this another time and everything worked fine.
You're right, the way that error is written it would imply that all your files are intact and that Steam is having problems hosting their cloud servers. I think this might be a good time to go to the Steam forums and tell them of the issue as they should be able to give some answers. I also asked a mate who owns the game and he says he's having no problems whatsoever.
It would be logical to presume that the problem occurred when you started throwing your files around but the error is quite ambiguous, so Steam forums is probably your best bet right now.
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