If you want to reset your laptop without using the recovery disk, or the ALT option that is malfunctioning, you dont really have any options. The recovery parition accessed by a combination of key presses very rarely works. As you have found out in your case, its best to install directly from a recovery cd.
Is there a reason that you dont want to use the recovery disk? Assuming you have one, just pop it in and follow the directions. The recovery disk will restart your computer back to factory specs and allow you to install all the drivers and utilities, so you basically have a new laptop. You need this if you want to wipe the Hard drive, or if you purchase a new hard drive for your acer computer.
http/www.recovery-disks/customcomputer.html
Is a third party website that we use to order recovery disks. Try checking the manufacture and if you cannot find the discs, order from the link above. They are a third party recovery disk company that we order from for our customers. They work really well and come pretty quick. The instructions they come with clear up most all questions you might have.