Grand theft auto IV not working?

So when grand theft auto went on sale I bought it on steam. I installed it and I started to run it, but this "windows live" stuff came up and I don't know what it is. I tried to log in with my xbox credentials and it said i needed an update, and when I clicked update it said update failed and signed me out. Can anyone help with this?

Also, when I tried to play without logging in, the resolution of the screen was really low, and when I started the game it was fine until half way up the road that everything was gone and there were floating people and cars in just blueness. Then, when I restarted the game, the first screen with the music wouldn't even come up, it was just black. I went to options and everything was locked on the lowest possible graphics setting, and I have an alienware computer so I don't know what to do.

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