When I run Towns directly from game folder, it works.
Log http://pastebin.com/xGAhqScu System info http://pastebin.com/FdGQWLhE
Can you confirm that disabling the overlay allows it to launch via the steam client.
Yes! With disabled overlay it works!
OK, so possible overlay issue with lwjgl.
The next client will have a fix for this.
Nothing extracted yet.
When I run Towns directly from game folder, it works.
Log http://pastebin.com/xGAhqScu
System info http://pastebin.com/FdGQWLhE