|"....i took it to a repair shop and they said an IC had to be replaced and they did it but now they say the password on the hdd is still there."|
That's exactly what I said would happen in response 18.
"I really dont get it why is it asking for a password when i never typed it in the first place."
I don't know why that is either. Sometimes laptop software buggers up for one reason or another and your situation happens - obviously the hard drive password/drivelock info is still on the hard drive. If you are the legitimate ORIGINAL owner, contact Acer - that's your only hope now. If they can't help you, nobody can, not even the experts, and you will have to get a new hard drive and start over. You can order a set of Recovery disks from Acer to re-load the software that was originally on the hard drive, which if it is the same situation as those for a HP or Compaq computer will cost you less than buying an OEM XP Home CD, or you could use or get yourself a regular or OEM XP CD and load Windows but you will have to load the drivers for your mboard after Setup is finished, and you will probably need to obtain drivers for components Windows doesn't have the drivers for, probably found in the downloads for your model on the Acer site.
"Will it still ask me this password if I connect the HDD through a USB drive?"
Yes. The password/drivelock is on the hard drive, no matter which way you connect it.
"HDD started acting crazy...."
"...then i started getting those hard disk error blue screens..."
Blue screen errors are almost always software errors. They can be caused by software conflicts, or the data can become corrupted becaise the hard drive is failing or the data has been damaged by a power surge or spike.
If your hard drive was failing in any case, it is likely you wouldn't be able to rescue much if any data off of it anyway.