Did you try a Restore to Factory Settings?
Power on your computer. When the Acer logo is displayed, press and hold the ALT key while pressing repeatedly the F10 key. Release the keys when a message displays that Windows is loading files.
After the system recovery program has loaded follow the prompts to reinstall the operating system.
If that is successful then this time make your recovery dvds with the Acer eRecovery program. ClickHere for howto recover and howto make recovery dvds
Also you can burn your own W7 with SP1 install DVD. Download the .iso from the link on heidoc.net which is an official MS download to use with the product key on the base of your laptop. Scroll down to the English(USA) versions. Be aware that if you reinstall using this W7 install DVD you will also need to go to the Acer website and download all the drivers you need and install them as well.