I think I would try to reinstall Windows. The fact that it says Windows is loading suggests that the hard drive is at least functioning. More likely Windows is corrupted.
Possibly this was caused by a hard drive problem -- in which case installing a hard drive is relatively simple. If you can find a hatch covering the drive remove it and replace with one of a similar capacity and type. If you want to take the opportunity to upgrade to a larger drive best to consult Acer on max size before buying.
I am now able to begin to boot from a boot disk. Windows begins to load, but then the dialogue box that asks if i want to do a complete or partial restore are inoperable and only exit is highlighted. Is this the hard drive?