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I'll give you the fix I used . Go into or your equivalent of program files 86 - Steam - Steam apps - Common - Arma 2 Operation Arrowhead - Expansion - Beta. Once there copy the two exe files or 'Application' files into the Arma 2 Operation Arrowhead folder and select replace. This should fix the error, I was getting it yesterday until I did this.
I'm looking to buy Arma 2 on steam sale but I was wondering if I could use a friends CD for installation due to data caps on my provider. My question is: Will this work? / is this allowed?