Can I distribute copies of any files in the Steam cache

http://support.steampowered.com/cgi-bin/steampowered.cfg/php/enduser/std_adp.php?p_faqid=110

Re-distribution of files from your Steam cache is illegal and a violation of the Steam Subscriber Agreement.

As with other illegal activity, any Steam Subscribers participating in the distribution of files from their Steam cache or any other Valve content not permitted for re-distribution may have their accounts terminated.

In accordance with the Steam Subscriber Agreement, Valve provides a limited license to re-distribute copies of the Steam Installer.

For more information, please read the Steam Subscriber Agreement.

The Steam Installer can be found at: http://www.steampowered.com/index.php?area=getsteamnow