It's a concern that the Repair CD will not load. I'd reset the BIOS to optimal defaults with HD set to boot first, then try booting the CD (same bit version?) using one-time BIOS Boot Menu key which is F12 on Acer.
Next try tapping F8 key at reboot to access Repair My Computer, run Startup Repair
repeatedly even if it reports nothing to Repair.
If this fails I'd try runnning Factory Recovery again, then install SP1 from its standalone installer to avoid the Update logjam. Then install Windows Updates in small groups starting with the drivers quickly updated in optional Updates. If a group fouls out, you can System Restore to reinstall them one-by-one to isolate the problem Update.
If you can find or download an Official Windows 7 Installation DVD you can clean reinstall without the factory bloatware and useless factory utilities which have better versions built into Windows 7. Here are the steps to get a perfect reinstall based on thousands we've helped with here: Reinstalling Windows 7