Yeah, mods on Steam games are fine. My Oblivion is modded out the arse. Plus it uses Steamworks so every version purchased anywhere is on Steam so any mods will have to work with it. It's as easy as clicking Data Files on the initial splash screen and ticking the mods you want when they're downloaded.
It's Games For Windows Live you gotta watch out for on that, the hoop jumping to mod GTA 4 is insane.
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