A few days ago, I allowed a LiveUpdate on my new Aspire One. After the update, wifi stopped working. In addition the removable drives (smart cards or keydrives) are no longer recognized. Apparently this is a widespread issue, and not just on the Linux version.

A few moments after it finishes booting, the error “Failed to Initialize HAL” is displayed, and a search produced this thread:

Re: Live update on 18/9/08

I tried all the suggestions on this and other similar threads, and have pretty much determined that some key files must be missing. Next thing to try will be to restore from the install disks and start over.

Note: Recovering the system did fix the problem. See this post for more info:
Recovering the system on the Acer Aspire One