I fixed the system, I was able to find out the correct System restore function... on the Aspire 4520, it is Alt+F10. why it worked this time.. I have no idea. I just say its Microflop Vista and leave it at that.But I am thinking Acer had some involvement with this OS.. kind of like Dell does. Locking out regular basic user functions and what not....
After the E-recovery failed.. twice, the boot manager was missing... So I threw in the Windows 7 64 bit disc, and after a reboot with ctl+alt+del, I hit control F10 and got the REAL CMOS menu.. I set it up for performace, taking the quiet boot off the HDD, and setting the Video memory from 64Mb to 256Mb which is the NVidia Spec on this model, changed the bootup sequence to use CD rom first, F10 saved and restarted, hit Del while rebooting and got my Windows 7 64 bit running.
YAY!
I attempted to initiate the Startup Repair Function for Vista 32 bit, and got Windows 7 64 bit instead

I guess if you screw it up enough, it will actually work.
now lets see if the luck continues ....