After many diagnostic tests, removing software, updating chip set drivers, rolling them back, contacting Acer Support, contacting AMD support, a solution has been found!
Turns out that the "GSOD" (grey screen of death) is a well known, well documented problem. I got solution from AMD/ATi, and passed it along to Acer Support.
Guess what? It's a fault with the chipset, and it's a KNOWN ISSUE (got that from S.I. Acer Tech support himself!) with the touch screen all in ones. They could have saved me months of frustration, hours of lost work by just telling me.
So, getting my AcerRacer refitted sooner than I had expected, will get that up and running. Then pack the unit with the buggy chipset back into it's original packaging, contact Acer and have a courier pick it up.
Oh, did I mention it's under warranty, and all of this, except my refitting older laptop with new hard drive, is on their dime?
So, in the process of shifting things from one external hd, to make a disc image back up of the units' drive, in case they have to replace the entire unit. Oh joy.