I found the fix on the Ubuntu Forums. Here are the steps to activate the change permanently on your Acer Laptop. It involves adding a line to a file in the /etc/modprobe.d directory.
1. Open a terminal and open up the editor by typing: sudo gedit /etc/modprobe.d/psmouse.conf and add this line to the file:
options psmouse proto=imps
2. Then select File -- > Save (saving the file in gedit)
Note that the psmouse.conf file does not exist and you are creating a new file in the /etc/modprobe.d directory.
Then Reboot. The fix should be in place when your netbook is re-booted, as the psmouse.conf file will be read into the kernel when it restarts.