For laptops, your best bet is to use the manufacturers drivers. http://support.acer.com/us/en/product/default.aspx?tab=1&modelId=1160,
select your OS from the drop-down list, is thiat where you got yoru drivers?
You can't change the default Windows drivers resolution.
Have you tried to fully uninstall the drivers, remove the adapter from device manager and install fresh? Your issue may be not with the drivers but with the video card crashing due to heat or a defect. Has this happened from when you got the laptop or something new? If the laptop is under warranty you may want to look into getting it replaced or repaired.