I get the following error when I try to connect to a server from the 0.4 client: "Unable to start Steam VC". The client stays exactly the same after this. I have tried this with the SilentPatch installed first but then removed and yet I still get the same error.
This would only really happen if your path to Vice City was misconfigured. First I'd make sure that you actually do own a copy of Vice City on Steam, and not that a retail copy of VC was just misconfigured. Double-check the path specified for gta-vc.exe as well and report back here.