I have an Acer Aspire 5100 laptop that I bought new in 2006. I made the backup restore cds as the computer requested when it was brand new and in warranty. I never had to use them until now, Feb. 2010. The disks installed okay until disk 6, which would not install and the drive kept kicking it out. The disk apparently never recorded properly in the beginning. SO I contacted Acer, and the response was that since it was out of warranty, I was out of luck. They could not even sell me restore disks because my computer was too old. 2006? Clearly Acer's stand is that if a product is out of warranty, they will not stand behind it.
Solutions: Obtain recovery disks from the Internet (ebay or computer store or P2P). Take the matter further contacting a manager in Acer (escalate) or write to a watchdog article in a computer magazine where sometimes they contact Acer for you and solve the dispute (worked for me in the past!). Other solution, download all necessary drivers for W7 from Internet and install the fresh new OS.
I know. I think that we have the same exact problem. I bought an Acer back in October 2006. In April, it somehow got infected with some malware. I tried to run in safe mode. After that, it won't even start. It'll give me three options on what to choose to run in (Safe, normal, last known config.) Acer won't even provide the recovery disks, and this is really frustrating for me.
All I can suggest, is that you somehow buy offline, via eBay like DarkGuest suggested. I know how frustrating this is, and how angry you must be. Trust me, I have to deal with it. I don't understand Acer, and I won't refer anyone to buy any of their products. Never buy from them, because it's nothing worth paying for.
I hope everything works out for you, GWaller.