Sounds like a bad hard drive, or the hard drive may not be connected correctly. If you have recovery disks, you can replace the hard drive and reload the system. If you do not feel comfortable with this, I would suggest you contact technical support in your region, to inquire about repair.
Member RevoMaxx is quickly moving up the ranks of Acer Community. He joined us in September and is already making a difference. It's great to see new members like him make a difference only after a few months. Thanks RevoMaxx!