Same problem here!
Just bought Star Wolves 1 - 3 on Steam and in 1 my Ships cant fire, only yellow spots appear (muzzle flashes) and dont go away ever.
Ships dance arround each other, no one gets hurt, game is broken.
I also have that one file that allways disapears but you guys seem to be a little further then me here, i put a ticket on Steam also.
Also i have strange thin lines in space... looks like some leftover from the development tools.
some screens of it:
http://www.imagebanana.com/img/soxxq...2613561215.jpg
http://www.imagebanana.com/img/rmj0z...2613555091.jpg
http://www.imagebanana.com/img/1oos2...2613540461.jpg
http://www.imagebanana.com/img/em4iw...2612490567.jpg
http://www.imagebanana.com/img/s1gmd...2612485249.jpg
Star Wolves 2 works fine i think (i can shoot at stuff and it takes damage in tutorial).
3 is not yet released, as expected, but it is listed as installed and i cant delete the fake entry.
Windows 7 x64