Amorphous silicon-containing diamond-like carbon (Si-DLC) coatings were deposited by Arf ion beam-assisted physical vapor deposition of tetraphenyl-tetramethyl-trisiloxane (704 Dow Coming diffusion pump oil) on AISI 4340 low alloy and 440 C high alloy steel specimens, as well as on thin wafers of the same compositions, in order to evaluate residual stresses within the coatings. During annealing in an argon atmosphere at 200 degrees C for up to 30 min, the residual compressive stress, attributed to hydrogen entrapment during deposition, gradually changed to tensile due to loss of hydrogen, and the rate of stress increase decreased with increasing annealing time. The cohesion and adhesion failure loads of the coatings decreased with annealing time, as did the friction coefficient between the coating and a diamond stylus. The specific wear rate: measured by pin-on-disk tribometry, increased with annealing time. These properties are affected not only by the change in residual stress state during annealing, but most likely also by devitrification and the accompanying grain growth. If these effects are neglected, then the properties may be correlated directly with residual stresses in the coating.