@quicksilver Thank you so much for this amazing guide! When I read this I about jumped out of my seat with excitement!
So, I have followed the steps in your post. I have the Steam version of HL, and have copied over just the VALVE folder.
The game does run! However I am getting interesting logging information in the upper left corner as textures are being loaded?? Also how can I shut off the FPS indication in the upper right?
Cheers, and thank you!!