I too had this issue as well (same laptop as you). I am not sure how I fixed my issue though. Steps I tried without success were to disable and re-enable adapter via kill switch and function keys, uninstall/reinstall driver, reinstall windows xp. None of those seemed to work.
Then I went digging through drivers and found that the driver my laptop originally used was not the same version being offered by acer (the one acer was pointing me to was a newer one). I found the old one floating around on the internet, did a uninstall of the driver and installed the new (old) one. I seem to be able to connect now which is nice, but I run into the disconnects every couple of minutes issue stated by others. still working on that issue but atleast I get connected... ::shrugs ::