Microsoft office 2007 Home Student program tells me that the microsoft product key on the label on the bottom of my brand new acer aspire one is incorrect. What do I do now?

Are you sure you're not entering the key from Windows? That sticker would be on the bottom.
Typically, the product key for MS Office is on a separate card in the documentation that came with your computer. If that's not the case, call the store you bought the computer from or call Acer Customer Service for assistance and don't give up until you get it resolved. Microsoft may also be a good resource.

Plese contact MS Office 2007 support in the morning and tellthem your trouble.

Thank you ...