Been reading for more than an hour. It seems to be the NAND. Screw Acer. I'm just a month out of warranty too. I haven't read any real solutions. I'm going to try this: unBRICK your ACER A500 ICONIA TABLET!!! Restore to 1.141.07 OTA UPDATE!!! - PPCGeeks
But if it really is the NAND, then it's not going to make a difference.
There's also this: http://forum.xda-developers.com/showthread.php?t=1445720
But as far as I know, there's not a way to do that without the NAND working, though it might prevent the problem.