Cannot format acer aspire one model AOA150

Hello,

I have a acer aspire one and I can't reformat it!

I tried, alt =F10 but it says it's missing a file, I downloaded a trial version of acronis and for what I can see the missing file is in place on the hidden partition. As I only have the trial version I can only see the files and not actually access them or backup them it seems :(
I do not have a precious image saved of my harddrive.

I tried to access the hidden harddrive using partedit32 but it doesn't work.
I also tried diskpart and it can't find ANY disks.

I tried to boot xp from a usb cd-drive and it boots from it but as soon as windows is starting up I get a blue screen saying the process was discontinued because some fault. This happens before I even get a chance to format it.

I'm running out of ideas! Please help!

I need to format it because something is wrong in the system and it runs kind of slow, doesn't always start up windows properly and I can't turn it off except switching the power off... it just keeps restarting. And yes, the warranty has run out....