Now go to your before downloaded file then drag and drop it into your Cod4 folder. Right click onto it and chose 'Delete' and confirm it. Since you have now your CoD4 folder locate the file iw3mp.exe. In the new window click on 'Local Files' and then 'Browse Local Files'.
Rightclick the game and choose properties. Find in the left list 'Call of Duty 4: Modern Warfare'. Open the Steam main window, then click Library, Games. Just in case you didn't find your CoD4 folder here is another way: Go to your 'Steam' folder (Which is likely in 'C:\Program Files(X86)') then click on 'steamapps' then 'common' and then 'Call of Duty 4'. If you know where you Steam folder is you can find it on this way: When done locate your CoD4 installation, there are 2 ways to find it.
This is the main and original game executable from CoD4 1.7. This update was kinda breaking the game completely. As many Steam gamers have noticed they got an update for Call of Duty 4 - Modern Warfare.