Now, I do own a hard copy of the game from back when, but it cannot go on-line anymore due to compatibility issues with windows 7.
Therefore, this leaves me thinking that steam gives multiple people the same CD Key. If we had been the only two on-line, I would have assumed the game was just broken, but there were four other players in the server. However when he tried to join on the same server he got a 'CD Key already in use' message, so I dropped out and he tried joining and was able to join then I attempted to re-join but this time I got the 'CD Key already in use' message. Okay, so last night a friend and I tried to jump on one of the servers (Usually around 2AM central time a few people will be on), we both downloaded the game via steam, and I joined successfully.