Steam_: BugsLayerUtil.DLL Not Found

[KPDGaskell]

I recently tried installing SRCDS on a new server but whenever I try to run any game I get the error Steam_: BugsLayerUtil.DLL Not Found and I can't connect to the server at all.

I've tried re-installing hldsupdatetool completely along with SRCDS and tried running the update commands multiple times to no avail.

Any help is greatly appreciated.

Server OS: Windows 7 Enterprise, 64 Bit
Processor: AMD Turion™ II Neo N40L Dual-Core Processor, ~1.5GHz
Ram: 1 GB
Game(s): Garry's mod (although I have tried other source games and encounter the same problem).
Start Up Command: srcds.exe -console -game "garrysmod"
Admin Mods: None
Full Install Command: hldsupdatetool -command update -game "garrysmod" -dir c:\srcds