Download the latest BIOS, and put both FLASHIT.EXE and the BIOS file in the root directory of the stick. Rename the BIOS file to ZG5IA32.FD, that's important. Do not remove the USB stick.
Turn the AA1 off, make sure both battery and AC adapter are connected. Press Fn+Esc, keep it pressed and press the power button to turn the AA1 on. Release Fn+Esc after a few seconds, the power button will be blinking. Press the power button once. The AA1 will now initiate the BIOS flash, do not interrupt it under any circumstances. After a while the power button will stop blinking, and the AA1 will reboot shortly after. Wait patiently.
The BIOS has been flashed and all settings reset to default.
If for some reason you made a mistake during the procedure and it doesn't reboot by itself wait 5 minutes before turning it off, just to be safe that it isn't still flashing the BIOS.
Can you take this one back to a shop? Is it still under guarantee? It does sound like a fairly serious hardware problem and it might be worth paying someone to fix this. Get a quote first and perhaps try 3 places before settling on an offer - don't go with the cheapest, go with the one that seems likely to do the job well. A proper Acer place would be ideal. You might want to take your hard-drive out first to keep your data safer but i don't know if that's easy with all Acer's.
I had what sounds like the same thing with mine in December. Does yours make any noise like the fan starting and stopping occasionally? If so it could be the BIOS has become corrupted. I was in Australia at the time so was stuck until I got back to the UK. Then sent it back to Acer who re-flashed the BIOS and all was fine although I have upgraded the BIOS since then. Hope this helps.