Acer :: Aspire 2000 CL32 Resetting Constantly

notebook- Acer Aspire 2000 series CL32

problem- resetting itself constantly!

Explanation- Basically, one day after normal operation of my computer, I turned it off properly. The next time i went to turn it on, it comes up with the normal BLUE screen which has "acer aspire" on it. Down the bottom it says f2 to boot or something and f12 to enter setup menu.

If i do not press anything, it goes to a black screen and attempts to locate a boot cd. After it does not find one, it goes black, then up comes the BLUE screen which says "acer aspire" on it. If i do not press anything or touch anything, this process will keep going and going until i turn it off by holding down the on/off power button.

Resolution / what i have attempted to do-I CAN enter setup menu, by pressing f12 on the blue acer aspire screen. Once i am in the setup menu, i attempt to exit. I have attempted to exit the setup menu in all way, incl. disgarding changes, saving changes etc etc.
Each time i try to exit the menu a different way, It just goes to a black screen for a few moments, then repeats the process of going back to the blue acer aspire screen.
I have attempted to insert a boot cd. So after the blue screen, it goes to the black screen and attempts to find the boot cd. After locating it, it verifies it, says something like "found in drive C" or something similar, then it goes back to the same process.

Question- How the hell can I use my computer again?

Further note- 80% of my data has been saved on an external hard disk so rebooting or any other process is fine by me, I just want to be able to use my computer again.
Before attempting all the above processes, I disconnected everything from my computer e.g. all usb devices. I have tried it on batteries and with the power cable.