Different versions of Linux are usually refereed to as distributions. Distro is short for distribution.
What you get on an Acer Aspire One is a very cut down customised version of Linux which has seen pretty much no support from Acer after the devices shipped and is pretty much impossible to update or do anything with beyond using what's provided. As such the usual response to anyone asking for help with it is to get rid of it and install a 'proper' version of Linux instead.
You can install Linux using a USB flash drive. There are some distros which are customised for use on Aspire One but I don't know how up to date they are. The Ubuntu info
does seem to have been updated past 9.10 which is over two years old now. You could get the latest version of Ubuntu from http://www.ubuntu.com/download
and try running it from a USB flash drive and if it seems to work OK, then install it.