This did not work the same thing happened.

After I uninstalled ZoneAlarm (the firewall) the game launches properly.

same bug from this post (http://feedback.arma3.com/view.php?id=4449 [^])but I cannot find in files under C:\Users\<My Name>\AppData\Local but, I did find the Arma 3 files in my steam directory C:\Program Files (x86)\Steam\steamapps\common\Arma 3 do you want files from there? Also not to sound kind of stupid but what are the dxdiag files you asked form in the mentioned post, I can not find them.

Made a new post with higher priory to be solved, because this bug is stopping me form testing the game and reporting valuable information to Bohemia. New post can be found here. http://feedback.arma3.com/view.php?id=6343

Solved by uninstalling ZoneAlarm http://feedback.arma3.com/view.php?id=6343

same bug from this post (http://feedback.arma3.com/view.php?id=4449)but I cannot find in files under C:\Users\<My Name>\AppData\Local but, I did find the Arma 3 files in my steam directory C:\Program Files (x86)\Steam\steamapps\common\Arma 3 do you want files from there? Also not to sound kind of stupid but what are the dxdiag files you asked form in the mentioned post?

My problem was not fixed by the newest update 3/25/13