Your laptop is fine, although I would recommend using a usb mouse if you do not already.
Steam is exactly as you say. It allows you to download games, and even mods for those games. There is even a free one called Alien Swarm. You've hit the nail on the head, that is exactly what it is.Can somebody explain Valve's Steam to me?
Think xbox live, but better. the games have awesome sales, sometimes going for as low as 4$, and above all its FREEE. and yes u can use controllers with pcCan somebody explain Valve's Steam to me?
Steam is an abomination. Their games are rediculously overpriced (Althogh they do have pretty good deals but thats rare), it has a terrible user interface, and most of their features were ripped off from another program but steam is convenient because you dont need any disks and it auto downloads patches.
But to answer your question, steam has NOTHING to do with mods. You can download them if you use steam or not.
As for controllers, i prefer to use a keyboard since its much more accurate and faster and not all games support them but they do work better for some games like GTA IV and dead space.
and 2GB ram means nothing, its all about your Processor and Graphics. If you have an intel chipset or something similar then your not going to be running many games. Go to start, click run and type dxdiag, that should tell you everything you need to know.
Steam is a service to buy Digital copies for games or register retail copies to get the same benefits. These benefits are a social network, easy online server access and things like that. It's not really about Mods. You should just Google those.
About input: If you have a USB cable for an Xbox 360 controller you can just use that on your PC.
2GB RAM laptop is an extremely vague description. You should also mention the processor and graphics card. Laptops are in general poor gaming systems compared to desktop PCs but if you could specify what you have exactly, I can answer that part of your question more accurately.
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