If that Aspire 1 boots from an USB port, then why not use a USB ext. CD drive. Buy the whole CD drive setup or from a kit add a CD drive to it. The use of a USB ext. kit w/o any drive, then buy what drive you need. I would think a flash drive w/OS executable might work. I just offer the CD drive solution as you're dealing a disc. Can't that disc be loaded onto a flash drive then to the Aspire?
I've pretty good luck so far with this adapter across various needs:
ADA-2020, found at http://www.geeks.com or similar online vendors.
Of course, I'm sure someone has already done this. Doesn't Acer support offer a solution or under their FAQ what is required, etc.?
As for .ISO file, you need to burn that to a disc or flash drive, thus either device must be ready beforehand.
call me a noob but this computer was a good price and had what i needed for funtionality but... i recently had a crash and i belive my hard drive is no longer useful.. ive tried using the erecovery managment.. no luck it gives me the error code =1005 stating there is no file system or may be corrupt... i also tried the network boot through artheros boot agent that did nothing at all.. i might buy a new hard drive for it but here is my problem.. if i buy a new drive or try to reinstall windows xp from usb how do i do it? either way i have to reinstall windows xp from a usb because i have no cd rom drive that was intelligently not added to these netbook type laptops im sure theres is a program "hopefully free" but either way i need it.. so if there is anyone out there that know's, your knowledge will be much apreciated. i have xp on an iso file ready to go but simply pluging in my removable drive doesnt work any idea's