The problem is not the hardware but basically a driver that is corrupt. The graphcs driver thats crashing is one for nVidia, the fix for this is an easy one.
Restart the laptop and repeatedly tap the F8 key. This should take you to an advanced boot options screen. Use the cursor key to navigate to Safe Mode and hit the enter. The computer will start up using basic display drivers so the nVidia drivers won't load and crash the machine.
When the comuter has booted right click on My Computer (XP) Computer (Vista) and select manage from the sub menu.
When the window pops up select Device Manager.
device list will populate. When it has look down the list for Display
Adapters. Click on the + icon next to Display Adapters to it expands.
Right click on the display adapter
and select uninstall.
Restart the computer and let it boot in normal mode.
If it boots
in normal mode let it detect the Display and install the drivers for it.
I would be a good idea to update the display drivers via the Acer Support
website or perform a Microsoft update and see if there any updated drivers for the nVidia graphics.