I suggest that you get a standard Windows XP install CD (instead of the Acer ones) and do a clean install of Windows (use the serial key at the base of the unit) and install the following up-to-date drivers:
1. AMD Athlon 64 processor driver:
http://www.amd.com/us-en/Processors/...1_9706,00.html
2. VIA Hyperion 4in1 chipset drivers:
http://www.viaarena.com/?PageID=403
3. ATI Mobility Radeon 9700 display driver (Omega Drivers):
http://www.omegadrivers.net/ati.php
4. Realtek AC97 audio driver:
http://www.realtek.com.tw/downloads/...&Software=True
5. Broadcom NetXtreme Gigabit Ethernet (BCM57xx) driver:
http://www.broadcom.com/drivers/downloaddrivers.php
6. Synaptics Touchpad driver:
http://www.synaptics.com/support/downloads.cfm#drivers
If you need more drivers, then check the Acer system CD that comes with the unit.
After installation also make sure that you've properly enabled PowerNow! in the power management control panel in Windows XP. The Power Schemes tab can be found in the Power Options Properties panel that is accessible via the control panel window. You should select the "Portable/Laptop" power scheme to properly enable the PowerNow! performance on-demand control.
If you still experience any problems after this your unit must be defective and should be replaced.