Try deleting all of Abe's Exoddus's content off Steam or like what Varrok said, verify game cache. Sometimes it can install incorrectly and some files can be missing, happened to me once.
And if you want to keep the save files, go into C:, Program Files, Steam, steamapps, [your username], common, Oddworld Abes Exoddus and your saves should be all in the folder and are .sav files* just move them to another folder somewhere then drag them back in after the game has reinstalled.
*It's been a while but I'm sure they are .sav files
If that isn't the problem well I don't know. Could be the fact your using Windows 7 to play a Windows 98 game but I doubt it.
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