I have recieved this error with both Arma 3 Alpha, and Developer game versions. (Current information applies to Developer game version).
Things i've tried:
1. Launch Commands
a. -nobenchmark
b. -winxp
2. Developer Mode
3. Disable firewall
4. Disable all Anti-virus software
5. Updated Drivers
a. Nvidia latest WHQL driver
b. Realtek HD Audio Driver
6. Reinstalled game twice
7. Verify integrity of game cache multiple times
8. Deleted steam folder ..\Steam\appdata then restarted
I do not run Zone-Alarm
Attached is my DxDiag