I found a rather odd one since the beginning of this month. Steam refused to connect even when firewall was turned off. 2 different PC's running Windows 8.1 with 2 different accounts and using different ISP's.
Finally found a solution that worked and that is if I use the -tcp switch. Don't know if its because I am running in Beta or something the ISP's has changed.
Just taught I would mention it here in case someone else also have the same issue.

