Answer solved. After communicating with Destineer, here is the solution. I tried it and it works like a dream.
1. DL the latest directX from Microsoft.
2. DL the latest version of Steam from the Internet and place it in the drive that you want RO to be placed in. Set up a Steam account using your RO codes.
3. At the RO set-up screen from disk 1, remove the "x's" from both Red Orchestra and directX boxes, so only Steam is checked. Click Next.
4. It will recognize that Steam has been loaded and automatically beginning downloading RO to the same drive letter.
5. Despite the fact that you unchecked directx in the start up screen, it will still ask you if you want to install it, just click cancel.
6. Start RO from the Steam directory and allow it to upload and update. It took me 183 minutes on a cable modem, so be patient.
7. Everything works.....so far.
Hope this helps.
`swamp