How to do a clean re-install of Windows 7 on my Acer Aspire 1410.

I do have the following two disks supplied by Acer after I purchased this notebook some time back.

1) Acer Upgrade DVD (Acer upgrade wizard, applications drivers for Windows 7)

2) Windows 7 Upgrade Media (Windows 7)

The issue is that I want to clean up my laptop of all old spyware/adware etc, and want to re-image.

When I use the upgrade DVD, (using the network; the notebook does not have a cd drive); the first two boxes are grayed out; (insert Acer Upgrade disk (Phase 1 completed) and Please insert Windows 7 disk (Phase 2 completed), and the only option is Acer Upgrade disk (drivers and applications).