I logged a ticket and SWsoft provided a solution to the problem I see posted here, i.e., the Game Server Modules won't install and configure properly.
Steam tries to use uncompress rather than gunzip to expand the distributions. Fedora Core 2 doesn't have uncompress.
In the /bin directory "ln -s gunzip compress" The makes gunzip available if a script asks for uncompress. After that, I removed the Game Server Module using the control panel. I put a copy of /root/psa/PSA_7.5.1/rpm_FedoraCore_2/opt/modules/csgs/cs-gs-1.0.0-fc2.build75041216.15.i586.rpm on my local host. Then I went through the drill of uploading a new module.
After that, I went through configuration of the module, including creating a new Steam account.
All seems to be working now. Some of the steps may be unnecessary, but the procedure worked for me. Linking uncompress to gunzip is the critical factor.