NOTE: I Began *WITHOUT* Half-Life 2, Episode 1, or Episode 2 installed -at all-. While having played them on this machine before, I had completely uninstalled them and deleted all local content, including saves and configurations.
Step 01) Installed Half-Life 2, Episode 1, and Episode 2 via Orange Box DVDs.
Step 02) Allowed all three to *fully* update via Steam, connected online.
Step 03) Restarted Steam to make sure there were no more updates.
Step 04) I DID NOT BEGIN ANY NEW SAVE GAMES. They are UNPLAYED / LOCKED.
Step 05) Shut down steam.
Step 06) Installed Cinematic Mod 10 in the appropriate directory.
Step 07) Installed Cinematic Mod 10.42 Hotfix immediately afterward.
Step 08) Started Steam and attempted to play the game, but got the MountAppFileSystem() 420 error. I checked the forums, and proceeded to do this:
Step 09) Went to the Library > Tools section in Steam.
Step 10) Installed Source SDK, Source SDK Base 2006, and Source SDK Base 2007.
Step 11) Allowed all three to *fully* update via Steam, connected online.
Step 12) Started Source SDK once, let it run and copy files, and shut it down.
Step 13) Started Source SDK Base 2006 once, and let it do the same.
Step 14) Started Source SDK Base 2007 once, and let it do the same as well.
Step 15) Used shortcut provided by Cinematic Mod 10 to play the game!
Screenshot:

Specs:
System Manufacturer and Model: Dell Inc. Studio 1747
Operating System: Windows 7 Home Premium 64-bit (6.1, Build 7600)
Processor: Intel(R) Core(TM) i7 CPU Q 720 @ 1.60GHz (8 CPUs), ~1.6GHz
Memory: 4096MB RAM
DirectX Version: DirectX 11
Card name: ATI Mobility Radeon HD 4650
Display Memory: 2804 MB
Current Mode: 1600 x 900 (32 bit) (60Hz)