Ok i had the same problem, and unfortunatley i had to revert back to won and forget about using steam. This means you need a retail version of Half-life and the 1.1.1.0 update. Simply install esf into Sierra/Half-Life and viola! I hope that future releases will Fix this (lack of a better word) bug so that we (the normal non-CS geeks) can install and play with zero problems.
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